FG Raises Agric Credit Scheme Fund To N50bn
The ACGSF was established by Decree No. 20 of 1977, and started operations in April, 1978. Its original share capital and paid-up capital were N100 million and N85.6 million, respectively. The Federal Government holds 60% and the Central Bank of Nigeria, 40% of the shares. The capital base of the Scheme was increased to N3 billion in March, 2001. The Fund guarantees credit facilities extended to farmers by banks up to 75% of the amount in default net of any security realized. The Fund is managed by the Central Bank of Nigeria, which handles the day-to-day operations of the Scheme. The Guidelines stipulate the eligible enterprises for which guarantees could be issued under the Scheme.
According to Punch the Federal Government has raised the share capital of the Agricultural Credit Guarantee Scheme to N50bn from N3bn.
The Central Bank of Nigeria disclosed this in a document titled ‘Agricultural Credit Guarantee Scheme Fund (Amendment) Act 2019.’
It stated that the ACGSF Amendment Act was assented to by the Federal Government on June 24, 2019.
According to the document, complete agricultural value chain financing is now allowed under the ACGSF Amendment Act 2019.
The CBN said, “Under the Agricultural Credit Guarantee Scheme Amendment Act 2019, the sharing ratio is Federal Ministry of Finance (60): Central Bank of Nigeria (40).
“The maximum for non-collateralized loans under the ACGSF Amendment Act 2019 is now N100,000. Under the amended Act, the maximum amount for collateralized 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 ACGSF Amendment Act 2019 now also includes the financing of production farm machinery, the implementation and equipment for production, processing, storage and transportation.”
The Act aimed to amend the ACGSF fund Act Cap. A11 laws of the federation of Nigeria, 2004, to enhance the capital base, expand the coverage of the scheme, increase the size of the loanable fund, increase membership and give more powers to the board and for related matters.
Source: https://punchng.com/fg-raises-agric-credit-scheme-fund-to-n50bn/
