Courtesy: Business Day
Thursday, May 3, 2012
Six banks get N10.71bn for 18 CACS projects – CBN
The Central Bank of Nigeria (CBN) has disclosed that during the month of March 2012, N10.71 billion was released to six banks with respect to 18 Commercial Agriculture Credit Scheme (CACS) projects.
This brings the total releases by the CBN since the scheme’s inception in 2009 to N175.525 billion for disbursement to 222 beneficiaries made up of 193 private promoters and 29 state governments that accessed the sum of N33 billion.
The CACS report for March 2012 available to BusinessDay shows that from inception to date 18 banks - Access Bank, Fidelity Bank, First Bank of Nigeria, GTBank, Eco Bank, Skye Bank, Stanbic IBTC, Union Bank of Nigeria, United Bank for Africa, Unity Bank, Zenith Bank, Diamond Bank, Sterling Bank, Citibank, Wema Bank, Mainstream Bank, Enterprise Bank, and FCMB, participated under the scheme.
During the period (March 2012), Abia State government accessed N1 billion while Rivers and Bauchi governments accessed additional N3 billion and N1 billion, respectively, from the CACS fund.
“The number of state governments participating in the scheme therefore stands at 29. These state governments accessed funds for on-lending to farmers’ unions, co-operatives and financing of other areas of agricultural interventions in their various states. FCT accessed N0.50 billion each from UBA and Union Bank, respectively; Bauchi State accessed N1 billion each from UBA and Union Bank, respectively; Rivers State accessed N4 billion from Zenith Bank,” the CBN stated in the report.
According to the CBN, “In the period under review, the sum of N470 million was withdrawn from Stanbic IBTC Bank in respect of Albookys Nigeria Limited due to contravention of the CACS guidelines. The bank was sanctioned with a penalty charge of N47.708 million.”
The apex bank stated further: “The analysis of number of projects financed under CACS by value chain showed that out of the 195 CACS private sector sponsored projects, production accounted for 47 percent and dominated the activities funded while processing accounted for 39 percent. These activities were distantly followed by marketing, storage and input supplies which registered 8 percent, 5.9 percent and 1 percent, respectively.
“With regards to the value of funds released, processing accounted for 52 percent followed by production which accounted for 45.6 percent of the value of enterprises financed. These were followed by marketing, storage and input supplies which registered 15.31 percent, 5.9 percent and 1 percent.”
Meanwhile, the CBN said it shall continue to actively support the realisation of Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) objectives.
NIRSAL is an agric transformation agenda that seek to address the problems of agric lending and development in the country through an integrated agric value chain financing platform.
It will leverage on its’ fund to increase bank lending within 10 years from the current 1.40 percent to 7 percent. NIRSAL’s $500 million is shared across five pillars: risk-sharing facility ($300 million), insurance facility ($30 million), technical assistance facility ($60 million), holistic bank rating mechanism ($10 million), and bank incentives mechanism ($100 million). The apex bank disclosed this in its 2012/2013 Monetary, Credit, Foreign Trade and Exchange Policy Guidelines, anchored on the medium-term framework of the two-year period, January 2012 to December 2013, which is expected to strengthen the gains of the previous years.
The CBN said it shall continue to facilitate the provision of affordable credit for agricultural development.
“Facilities extended to farmers by Micro Finance Banks (MFBs) shall continue to be guaranteed by the ACGS in 2012/2013. The bank shall pursue the review of the Agricultural Credit Guarantee Scheme Fund (ACGSF) Act to increase the capital base and loan limits, and expand the guarantee to cover the entire agricultural value chain during the period 2012/2013,” the guideline stated.
On Interest Drawback Programme (IDP), the CBN in the guideline said the IDP rebate shall continue to be paid to eligible farmers in the 2012/2013 fiscal years who liquidate facilities obtained as at and when due under the ACGS. The IDP interest rebate to farmers who borrow at market interest rates and repay on schedule under the Agricultural Credit Guarantee Scheme (ACGS) shall continue to be at 40 percent.
Courtesy: Business Day
Courtesy: Business Day