The Central Bank of Nigeria (CBN) says at least 1,779 farmers in Ogun State have benefitted from its agricultural loans in 2021, amounting to N723 million.
The CBN, Abeokuta Branch Controller, Wahab Oseni disclosed this at the Ogun State Award for Best Farmer of the Year, 2021.
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Oseni said the disbursement was part of the Agricultural Credit Guarantee Scheme Fund (ACGSF) established by Decree No. 20 of 1977 to guarantee credit facilities extended to farmers by banks.
He said: “The purpose of the fund is to provide a guarantee in respect to loans granted by lending banks up to the tune of 75 per cent net of the amount realised on collateral in case of default for agricultural purposes.
“This is aimed at increasing the level of bank credit to the agricultural sector. The scheme through the interest drawback programme also rewards beneficiaries by giving back 50% of interest paid on the loan if fully repaid within the stipulated period.
“In 2021, the Development Finance Office, Central Bank of Nigeria, Abeokuta guaranteed one thousand, seven hundred and seventy-nine (1779) loans valued at seven hundred and twenty-three million, one hundred and one thousand (N723,111,000.00) from three (3) banks, comprising of two micro finance banks and one deposit money bank.”
