The Central Bank of Nigeria (CBN) has said 31,666 loans worth N5.92 billion were guaranteed under the Agricultural Credit Guarantee Scheme Fund (ACGSF) in 2021.
Meanwhile, beneficiaries of the scheme called for an increase in the maximum amount of loans guaranteed per farmer under the scheme, citing the rising prices of goods and services.
Established in 1977 with the aim of increasing the level of bank credit to the agricultural sector. The Fund provides guarantee in respect of loans granted by any bank for agricultural purposes.
Speaking at the ACGSF Farmers Awards ceremony held at the CBN office in Lagos, the Acting Branch Controller of the apex bank, Nnaemeka Ukanyirioha, noted that the CBN has continued to ensure facilitating access to finance for operators in the agricultural sector despite the challenging economic situation in the country.
He disclosed that under the ACGSF, the CBN guaranteed “a total of 31,666 loans valued at N5.92 billion” in 2021. He explained that the award was to reward participants under the scheme “who have shown exceptional promise and dedication to growing our agricultural sector despite the numerous challenges faced. “The previous year was particularly difficult with businesses trying to recover from the after effects of a global pandemic.
This further underscored the importance of a nation’s ability to feed itself. “It is evidence that our commitment in rebuilding our agricultural might as a nation is crucial not only for our subsistence but also our economic relevance on a global scale.”