The Central Bank of Nigeria (CBN) Agricultural Credit Guarantee Scheme Fund (ACGSF) has guaranteed at least 1,190,970 loans valued at N122.6 billion to farmers in its 43 years of operation.
The ACGSF’s board Chairman, Mr Stephen Okon, disclosed this on Thursday in Abuja at the presentation of the 2020 ACGSF best national farmers awards.
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The fund’s share capital has also increased from N3bn to N50bn to enable it guarantee more loans, he said.
Okon also said the scheme was established in 1977, and that in 2020 alone, it guaranteed 30,267 loans valued at N4.32bn.
The federal government and CBN both contribute to the fund by 60:40 ratio, while CBN serves as the secretariat and managing agent of the scheme.
The fund encourages Deposit Money Banks (DMB) to lend to those engaged in agriculture by providing guarantees.
It mitigates risks associated with banks’ lending to agriculture by guaranteeing to pay banks 75 per cent of the net amount in default in accordance with the provisions of the enabling act.
“It is important to state that the loan under the scheme includes advances, overdrafts and any credit facility,” said Okon.
The board chairman also said this year’s awards marked the culmination of the ACGSF board’s effort to re-introduce the best farmers’ awards.
Mr Ene Martin Ibeabuchi, CEO Nemat Agro Services Ltd, won ACGSF’ best farmer of the year for adhering strictly to the tenets and guidelines of the ACGSF scheme and his commitment to promptly repay the facility.
He got a N3.4m loan from Access Bank and got a N1m reward, among other incentives.
