CBN guaranteed N1.056bn to farmers in January

Central Bank of Nigeria (CBN) has guaranteed a total of N1.056 billion  to 2,060 farmers under the Agricultural Credit Guarantee Scheme (ACGS) in January this year.

According to the CBN monthly   report on ACGS, the amount represents an increase of 12.5 per cent and 68.7 per cent above the levels in the preceding month and the corresponding month of 2013, respectively.

A sub-sectoral analysis of the loans guaranteed indicated that the food crop sub-sector had the largest share of N923.3 million or 87.4 per cent guaranteed to 1,653 farmers, the livestock sub-sector followed with N74.7 million or 7.1 per cent for 192 people, while  N27.8 million or 2.6 per cent of the fund  went to 84 beneficiaries under fisheries sub-sector. The mixed crops sub-sector received N18.2 million or 1.7 per cent  guaranteed to 65 beneficiary, cash crops sub-sector got N6.2 million or 0.6 per cent for 20 farmers, while “Others” share was N6.1 million or 0.6 per cent for 46 beneficiaries.

Analysis by state showed that 23 states benefited from the Scheme during the month under review, with the highest and lowest sums of N500 million or 47.3 per cent and N0.1 million or 0.02 per cent  guaranteed to Jigawa and Borno States, respectively.

Meanwhile,  the CBN at the end of January released  N228.2 billion  to the participating banks for disbursement for 307 projects/promoters  under the Commercial Agriculture Credit Scheme (CACS)

The CACS was established to finance large ticket projects along the agriculture value chain. The scheme is being administered at a single digit rate of nine per cent to beneficiaries for a period of seven years. State governments, including the FCT can access a maximum of N1 billion each for on lending to farmers’ cooperatives or other areas of agricultural intervention.

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