The Central Bank of Nigeria (CBN) and the Federal Government, through the Agricultural Credit Guarantee Fund (ACGSF), have to date guaranteed a total of N129.084 billion in agricultural loans to farmers in the country.
ACGSF Board Chairman, Mr. Stephen Okon who said this yesterday in Calabar during the 39th ACGSF Board Meeting with Stakeholders on New Guidelines and Operations of the ‘ACGSF and the 2021 ACGSF Best Farmers Awards, said that the ACGSF was established by Decree No. 20 of 1977 to guarantee agricultural credit facilities granted to farmers. The federal government and the CBN contribute to the fund at a rate of 60 percent to 40 percent, respectively.
He explained that the CBN, however, also acts as the managing agent of the program and the secretariat of the Fund, which encourages depository banks to lend to people engaged in agriculture by providing collateral and mitigating the associated risks. bank loans to agriculture; by guaranteeing to pay the banks 75.0% of the net amount in default in accordance with the provisions of the enabling law.
Okon said, “The ACGSF program has proven to be relatively successful in de-risking the agricultural sector in Nigeria as evidenced by the number of loans guaranteed since its inception to date. A total of 1,224,795 loan recipients worth N129.084 billion have been guaranteed from inception till February 2022. It should be noted that Cross River State from January to February 2022 guaranteed a total of 73 recipients of loans under the scheme worth N24.300 million. . This brought the total loans secured in Cross River State since the inception of the scheme in 1978 to February 2022 to 18,406, valued at N2.305 billion.
CBN Calabar Branch Comptroller, Ms. Glory Iniunam, in an interview with reporters, said farmers are encouraged to get the loan and “when you get a loan and you pay it back, you get a reward”.