CBN lends N1.75 billion to 14,258 farmers in FCT – The Whistler Newspaper

By on June 30, 2022 0

The Central Bank of Nigeria, through the ACGSF Agricultural Credit Guarantee Fund, has extended a N1.75 billion loan to 14,258 farmers in the Federal Capital Territory.

ACGSF President, Mr. Stephen Okon made this known during the National Farmers Award on Thursday in Abuja.

Okon said that of this amount, 973,646 loan recipients have repaid a total of N98.91 billion.

He said the ACGSF has introduced new strategies to repackage and reposition the program for greater effectiveness and efficiency.

This, he noted, would position Nigeria to become self-sufficient in food production.

He added that the program also creates millions of jobs, supplies key markets across the country and mitigates the effects of exchange rate movements on local prices.

Okon also explained that the program has proven to be relatively effective in reducing the risks of the agricultural sector in Nigeria, as evidenced by the number of loans guaranteed since its inception to date.

He said: “A total of 1,232,326 loans worth N130.903 billion have been guaranteed since inception till May 2022, of which 973,646 beneficiaries have repaid a total of N98.91 billion.

“It should be noted that the FCT from January to May 2022 guaranteed a total of 82 loan recipients under the scheme, worth N22.580 million.

“This brought the total loans secured in the FCT from the inception of the program in 1978 to May 2022 to 14,258, valued at N1.748 billion.

He added that the maximum for an unsecured loan has increased from N20,000.00 to N100,000.00 and the maximum for a secured loan from N10 million to N50 million.

Okon added that to further incentivize program participants, the Board last year approved increasing the interest rebate for farmers and agricultural value chain participants from 40% to 50%. to cushion the effect of the COVID-19 pandemic.

The Branch Comptroller of CBN Abuja Branch, Mr. Ogbu Michael said at the event that the successes achieved under the ACGSF have led to significant improvement in deposit bank lending to the sector agricultural.

He said the COVID-19 pandemic and the Russian-Ukrainian war had affected the global supply chain, noting that CBN agriculture and other real sector interventions had helped insulate the economy from external shocks.