Business
Nigerian govt increases agric credit scheme fund to N50bn
The Nigerian government has upped share capital of the Agricultural Credit Guarantee Scheme Fund (ACGSF) from N3 billion to N50 billion, the Central Bank of Nigeria (CBN) declared on Monday.
In a document titled ‘Agricultural Credit Guarantee Scheme Fund (Amendment) Act 2019’ and issued on Monday, the apex bank noted that ACGSF Amendment Act was assented to by the Nigerian government on 24th June.
Complete agricultural value chain financing is now allowed under the ACGSF Amendment Act 2019, the document said.
“Under the Agricultural Credit Guarantee Scheme Amendment Act 2019, the sharing ratio is Federal Ministry of Finance (60): Central Bank of Nigeria (40).
Read also: Bank’s credit to economy soars by N3.3tn in one month –CBN
“The maximum for non-collaterised loan under the ACGSF Amendment Act 2019 is now N100,000. Under the amended Act, the maximum amount for collaterised loan granted to individuals, cooperative societies and corporate entities is now N50m, up from N10m.
“Complete agricultural value chain financing is now allowed under the Agricultural Credit Guarantee Scheme Amendment Act 2019,” the CBN added.
The ACGSF Amendment Act 2019 now incorporates the financing of production farm machinery, implementation and equipment for production, processing, transportation and storage.
The Act planned to modify the ACGSF fund Act Cap A11 laws of the federation of Nigeria 2004 in order to shore up the capital base, enlarge the scheme’s coverage, increase the size of the loanable fund, increase membership and delegate more powers to the board and for related matters.
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