CBN Amends CACS Guidelines, Disburses N272.6b For 351 Projects | Independent Newspapers Limited
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CBN Amends CACS Guidelines, Disburses N272.6b For 351 Projects

Posted: May 20, 2015 at 12:45 am   /   by   /   comments (0)

By Bamidele Ogunwusi –  Lagos


Central Bank of Nigeria (CBN) on Tuesday disclosed it has amended the Commercial Agriculture Credit Scheme (CACS) introduced in April 2010.

The amendment made available in a circular issued by the Director, Financial Policy and Regulatory Department of CBN, Kelvin Amugo, explained, was part of efforts to sustain the public interest and enhance its operations to meet expectation

Godwin Emefiele, CBN Governor

Godwin Emefiele, CBN Governor

The scheme is to fast track development of the agricultural sector by providing credit facility to commercial agricultural enterprises at single digit interest.

According to the circular, the revision affects Sections 8.0 and 17.0 (b) (IV), which provides that payment of interest on CACS facilities should not be beyond 9 per cent and the 9 per cent must be inclusive of all charges.

This is coming as the bank disclosed that credit it released under the Commercial Agriculture Credit Scheme (CACS) since 2010 to the participating banks for disbursement stood at N272.36 billion.

The apex bank’s economic report for February 2015 stated that the amount was disbursed by 20 commercial banks for 351 projects.

According to the report, a total of N135.5 million was guaranteed to 5,008 farmers under the Agricultural Credit Guarantee Scheme (ACGS).

The amount represented an increase of 55.1 and 3.1 per cent above the levels in the preceding month and the corresponding period of 2014, respectively.

However, the sub- sectoral analysis showed that food crops obtained the largest share of N877.3 million (77.3 per cent) guaranteed to 3,933 beneficiaries, livestock had N112.3 million (9.9 per cent) guaranteed to 306 beneficiaries, Fisheries sub-sector got N62.3 million (5.5 per cent) guaranteed to 185 beneficiaries, and mixed crop received N49.3 million (4.3 per cent) guaranteed to 255 beneficiaries.

Meanwhile, CBN revealed that growth in the key monetary aggregate decelerated further.

The report stated that broad money (M2) declined by 1.6 per cent, compared with the 0.1 per cent decline recorded in January.

The apex bank explained that the development relative to the level at the end of the preceding month was due, to the 6.4 and 4.3 per cent fall in foreign assets (net) and other assets (net) of the banking system, respectively.