Agricultural Credit Guarantee Scheme Fund (ACGSF)
The ACGSF began operations in April 1978, and was established by Decree No. 20 of 1977, with an original share capital and paid up capital of N100 million and N85.6 million, respectively.
The Federal Government holds 60% while the Central Bank of Nigeria holds the other 40% of its shares.
The fund guarantees credit facilities of up to 75% the amount in default net of any security realized.
The fund is managed by the Central Bank of Nigeria, which also manages day-to-day operations of the schemes.
Agricultural Credit Support Scheme (ACSS)
The ACSS is an initiative of the Federal Government and the Central Bank of Nigeria with the active support and participation of the Bankers Committee. The Scheme has a prescribed fund of N50 billion.
ACSS was introduced to enable farmers exploit the untapped potentials of Nigeria’s agricultural sector, reduce inflation, lower the cost of agricultural production (i. e. food items), generate surplus for export, increase Nigeria’s foreign earnings as well as diversify its revenue base.
The scheme operates through the Central Implementation Committee (CIC) at national level, through the State Implementation Committees (SICs) at state level. This is to help ensure that the objectives of the scheme are realized without hindrance.
To access the loans under this scheme, applicants are encouraged to approach their banks for loan through the respective state chapters of farmers associations and state implementation committee.
Applicants who pay back their facilities on schedule are to enjoy a rebate of 6.0 per cent, thus reducing the effective rate of interest to be paid by farmers to 8.0 per cent.
Commercial Agriculture Credit Scheme (CACS)
As part of its developmental role, the Central Bank of Nigeria (CBN) in collaboration with the Federal Ministry of Agriculture and Water Resources (FMA&WR) established the Commercial Agriculture Credit Scheme (CACS) in 2009 to provide finance for the country’s agricultural value chain (production, processing, storage and marketing).
The primary objectives of the Scheme are to:
- Fast-track the development of the agricultural sector of the Nigerian economy by providing credit facilities to large-scale commercial farmers at a single digit interest rate;
- Enhance national food security by increasing food supply and effecting lower agricultural produce and products prices, thereby promoting low food inflation;
- Reduce the cost of credit in agricultural production to enable farmers exploit the untapped potentials of the sector; and
- Increase output, generate employment, diversify Nigeria’s revenue base, raise the level of foreign exchange earnings and provide input for manufacturing and processing on a sustainable basis.
Detailed information on the operational modalities for the CACS are shown on the Guidelines for Commercial Agricultural Credit Scheme while the performance of the Scheme is indicated in the Monthly Report. Read more here.
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