FG Raises Agric Credit Scheme Fund To N50bn
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 on Monday entitled ‘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-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 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.