Farmers Benefit From CBN Agric Credit Scheme

A total of  692,716 farmers secured N41.3 billion in  loans guarantees within the last 33 years from the Agricultural Credit Guarantee Scheme Funds (ACGSF) of the Central Bank of Nigeria (CBN), an official has said.

The Chairman of the ACGSF Interim Management Committee, Alhaji  Baba Gidado, disclosed this during a courtesy visit on  Gov. Patrick Yakowa in Kaduna.

Gidado said that N6.933 billion of the amount was granted to farmers in 2009 from which 414 farmers in Kaduna State accessed N121.4 million through the four participating banks.

“ This brought the total guaranteed loans in Kaduna State from the inception of the scheme in 1978 to November 2010 to N1.29 billion.

“  In terms of loan recovery, 18,007 loans valued at N695.2 million were repaid under the scheme in Kaduna State from its inception, the chairman said.

He commended the state government  for participating  in the various agricultural  loan schemes initiated by the CBN.

The Tide learnt that  the scheme was introduced to provide capital constrained farmers  with loans to increase food production.

Responding, Yakowa said farmers were not fully participating due to the lack of adequate information and inaccessibility of the facility from the CBN approved commercial banks.

He said that the state government had deposited N200 million in the four commercial banks under the Trust Fund Model conceived to reduce risk by the banks and that only one of the banks was active in lending out funds to farmers.

He said that so far, none of the banks had released up to N100 million to the beneficiaries and appealed to the CBN to re-visit the programme to enable the banks become more active in the programme.

The governor pledged to support  the scheme as 80 per cent of the people of the state  were farmers who needed financial support to increase production.

Yakowa, who was represented by his Deputy, Alhaji Ramalan Yero, directed the Commissioner for Finance and the Permanent Secretary in the Ministry of Agriculture to discuss further with the officials of the scheme for better collaboration.