Central Bank of Nigeria’s Agricultural Credit Guarantee Scheme Fund (ACGSF) has guaranteed at least 1,190,970 million loans valued at N122.632 billion to farmers across the country within forty- three years of its existence. ACGSF was established by Decree No. 20 of 1977 to guarantee agricultural credit facilities granted to farmers.
The Fund’s share capital has also been increased from N3 billion to N50 billion to enable it guarantee more loans across the country.
The ACGSF board chairman, Mr Stephen Okon, disclosed this yesterday in Abuja at the presentation of 2020 Agricultural Credit Guarantee Scheme Fund (ACGSF) best national farmers awards to recipients.
Okon said the scheme established in 1977, in 2020 alone guaranteed a total of 30,267 loans valued at N4.32 billion, just as the scheme’s scope has been widened to fund all agriculture value chain.
The fiscal and monetary authorities both contribute to the fund in the ratio of 60 per cent and 40 per cent, respectively with CBN serving as the managing agent of the scheme and the secretariat.
The fund encourages deposit money banks to lend to those engaged in agriculture by providing guarantee. It mitigates risks associated with banks’ lending to agriculture; by guaranteeing to pay banks 75 per cent of the net amount in default in accordance with the provisions of the enabling Act.”
The agriculture guarantee scheme provides guarantee in respect of loans granted by any bank for agricultural purposes, with the aim of increasing the level of bank credit to the agricultural sector.