CBN dis­burses N611.5bn to com­mer­cial farm­ers

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The to­tal amount dis­bursed to farm­ers un­der the Com­mer­cial Agri­cul­ture Credit Scheme from in­cep­tion in 2009 rose to N611.5bn as of the end of Novem­ber 2019.

The Central Bank of Nige­ria dis­closed this in its Novem­ber 2019 eco­nomic re­port

Part of the re­port read, “In Novem­ber 2019, the sum of N1.07bn was dis­bursed to three projects un­der the Com­mer­cial Agri­cul­ture Credit Scheme. Thus, the to­tal sum re­leased to the econ­omy, un­der the scheme from in­cep­tion in 2009 to date, stood at N611.50bn in re­spect of 596 projects.

“In Novem­ber 2019, 62 projects re­paid the sum of N8.15bn, of which pay­ment by 59 projects were steady re­pay­ments, while three projects were full re­pay­ments.

“The re­pay­ments brought the cu­mu­la­tive re­pay­ment un­der CACS from in­cep­tion in 2009 to N384.41bn.”

An anal­y­sis of the num­ber of projects fi­nanced un­der the CACS by value chain in­di­cated that of the 596 CACS spon­sored projects, pro­duc­tion ac­counted for 61.6 per cent and dominated the ac­tiv­i­ties funded, while pro­cess­ing ac­counted for 27.7 per cent.

These were fol­lowed by stor­age, in­put sup­plies and mar­ket­ing, which ac­counted for 4.7 per cent, 3.3 per cent and 2.7 per cent, re­spec­tively.

The CBN said the Agri­cul­tural Credit Guar­an­tee Scheme guar­an­teed a to­tal of N388.22m to 2,125 farm­ers in Novem­ber 2019.

The amount rep­re­sented a de­crease of 0.5 per cent and 5.3 per cent below the levels in the pre­ced­ing month and the cor­re­spond­ing pe­riod of 2018, re­spec­tively.

Sub-sec­toral anal­y­sis showed that food crops ob­tained the largest share of N182.55m (47.0 per cent) guar­an­teed to 1,127 ben­e­fi­cia­ries, fol­lowed by live­stock sub-sec­tor at N84.36m (21.7 per cent) guar­an­teed to 351 ben­e­fi­cia­ries; and cash crops at N36.07m (9.3 per cent) guar­an­teed to 177 ben­e­fi­cia­ries.

Fish­eries, mixed crops, and ‘oth­ers’ ob­tained N34.39m (8.9 per cent), N31.91m (8.2 per cent) and N18.95m (4.9 per cent) guar­an­teed to 103, 279 and 88 ben­e­fi­cia­ries, re­spec­tively.

Analy­ses by states showed that 28 states, in­clud­ing the FCT, ben­e­fited from the scheme in Novem­ber 2019, with the high­est and low­est sums of N67.49m (17.4 per cent) and N1.24m (0.3 per cent) guar­an­teed to Ogun and Ji­gawa states, re­spec­tively.

“The pre­dom­i­nant agri­cul­tural ac­tiv­i­ties in Novem­ber 2019 were har­vest­ing of grains, legumes, and tu­bers across the coun­try. In the live­stock sub-sec­tor, farm­ers in­ten­si­fied their ac­tiv­i­ties in prepa­ra­tion for the ex­pected end of year bumper sales. The end pe­riod head­line in­fla­tion, on year-on-year and twelve-month mov­ing av­er­age bases was 11.85 per cent and 11.35 per cent, re­spec­tively, in Novem­ber 2019,” the bank stated.

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