CBN releases N10.7 bn for agric projects

CBN releases N10.7 bn for agric projects

The Central Bank of Nigeria (CBN) has released about N10.71 billion to six commercial banks for the Commercial Agricultural Scheme (CACS). The amount is the apex bank’s allocation for one quarter.

The six banks are to lend the money under the CACS, which is an initiative of the CBN aimed at increasing activities within the sub-sector.

The apex bank, has now released N175.5 billion since 2009 to N175.525, when the scheme began.

The money is meant for disbursement to not less than 222 beneficiaries, which includes, 193 private promoters and 29 state governments benefitted from the sum of N33 billion.

According to the scheme’s first report, eighteen banks have not only participated in the scheme, but also received various sums for onward lending for agricultural activities.

These banks according to the report are Access Bank, Fidelity Bank, First Bank of Nigeria, Tank, Eco Bank, Skye Bank, IBTC and Union Bank of Nigeria.

Others are, United Bank for Africa, Unity Bank, Zenith Bank, Diamond Bank, Sterling Bank, Citibank, Wema Bank and Mainstream Bank, Enterprise Bank, as well as FCMB, participated under the scheme.

According to the report, Abia State has accessed N1 billion while Rivers and Bauchi have accessed additional N3 billion and N1 billion, respectively during the quarter under review.

“The number of state participating in the scheme therefore stands at 29, these state governments have accessed funds for on-lending to farmers’ unions, co-operatives and financing of other areas of agricultural interventions in their various states. There are indications that FCT accessed N0.50 billion from UBA and Union Bank, while Bauchi state has accessed N1 billion from UBA and Union Bank while Rivers accessed N4 billion from Zenith Bank,” the CBN stated in the report.

“In the period under review, the sum of N470 million was withdrawn from Stanbic IBTC Bank in respect of Albookys Nigeria Limited due to contravention of the CACS guidelines, the bank was sanctioned with a penalty charge of N47.708 million,” the report stated.

“The analysis of number of projects financed under CACS by value chain showed that out of the 195 CACS private sector sponsored projects, production accounted for 47 percent and dominated the activities funded while processing accounted for 39 percent, these activities were distantly followed by marketing, storage and input supplies which registered 8 percent, 5.9 percent and 1 percent, respectively,” the report further stated.

The report also indicated that with regards to the value of funds released, processing accounted for 52 percent followed by production which accounted for 45.6 percent of the value of enterprises financed and these were followed by marketing, storage and input supplies which registered 15.31 percent, 5.9 percent and 1 percent.