CBN Disburses N596bn to Farmers

Obinna Chima

The total amount released by the Central Bank of Nigeria (CBN) under the Commercial Agriculture Credit Scheme (CACS) from inception to the participating banks for disbursement stood at N596.44 billion for 576 projects as at the end of the fourth quarter of 2018.

Of the total number of projects, 34 were in respect of state governments.

The Central Bank of Nigeria (CBN) disclosed this in its Economic Report for the fourth quarter of 2018, released recently.

A total of N852.15 million was guaranteed to 5,454 farmers under the Agricultural Credit Guarantee Scheme (ACGS) in the fourth quarter of 2018. The amount represented a decrease of 40.1 per cent and 5.9 per cent below the levels in the preceding quarter and the corresponding period of 2017, respectively.

The report noted that the cessation of rainfall led to widespread dryness of severe to-extreme intensity across the country in fourth quarter of 2018. Generally, the predominant agricultural activities during the review quarter were the harvesting of tubers, grains and vegetables, while pre-planting operations in preparation for dry season planting commenced.

In the livestock sub-sector, farmers engaged in the fattening of cattle and stocking of broilers to take advantage of yuletide season sales.

Sub-sectoral analysis of the ACGS showed that food crops got the largest share, amounting to N369.54 million (43.4%), guaranteed to 2,373 beneficiaries; followed by mixed crop subsector, which received N162.75 million (19.1%), guaranteed to 1,710 beneficiaries N138.44 million (16.2%) was guaranteed to livestock sub-sector in favour of 564 beneficiaries; while cash crop, fisheries and ‘others’ sub-sectors got N105.28 million (12.4%), N58.82 million (6.9%), and N17.32 million (2.0%), guaranteed to 542, 175 and 90 beneficiaries, respectively.

Analysis by state showed that 30 states and the Federal Capital Territory benefited from the scheme with the highest and lowest sums of N95.83 million (11.3 per cent) and N1.99 million (0.2 per cent) guaranteed to Ogun and Bayelsa states, respectively.

Activities in the industrial sector showed improvements during the fourth quarter of 2018, on account of expansion in the manufacturing activities due to increased employment, output and new orders in the manufacturing sub-sector. Slowdown in prices of input also contributed to increased activities. Thus, industrial production in the review quarter indicated