February 23, 2025
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By Andy Nssien

A total of 41,341 loans, amounting to N5.85 billion under the Agricultural Credit Guarantee Scheme (ACGS),were guaranteed last year, compared with 58,548 loans valued at N8.1 billion in 2016. This represented decrease of 29.4 percent and 27.8 per cent in volume and value of loans, respectively.

Analysis of the loans showed that microfinance banks granted

40,615 loans (98.0% of volume) valued at N5.7 billion (97.0% of value), while

726 loans (2.0% of volume) valued at N0.15 billion (3.0% of value) were

disbursed by commercial banks, according to the just released draft of 2017 CBN annual report.

Further breakdown of volume of loans guaranteed by category of borrower

showed that 41,046 loans (99.3%) were granted to individuals; 215 loans

(0.5%) to self-help or informal groups; 56 loans (0.14%) to cooperatives; and 24

loans (0.06%) to companies.

By value of loans, the distribution translated to 5.77 billion (98.7%) for individuals;

N0.03 billion (0.53%) for self-help groups; N0.027 billion (0.47%) for cooperatives; and

N0.016 billion (0.28%) for companies.

The distribution of number of loans guaranteed by purpose indicated that

food crops dominated with 28,774 loans (70.0%), followed by mixed farming

with 4,027 loans (10.0%); livestock, 3,188 (8.0%); cash crops, 3,036 loans (7.0%);

fisheries, 1,383 loans (3.0%); and ‘others’, 933 loans (2.0%).

In terms of value of loans guaranteed, food crops accounted for N3.6 billion (62.0%); livestock,

N0.76 billion (13.0%); cash crop, N0.52 billion (9.0%); mixed farming, N0.41 billion (7.0%); fisheries, N0.39 billion (7.0%); and ‘others’, N0.13 billion (2.0%)

On Anchor Borrowers’ Program (ABP), the report said, the sum of N27.5 billion was disbursed to 129,709 smallholder farmersin 2017,through 10 participating financial institutions (PFIs)

The farmers cultivated 134,231 hectares of land, raised 3,077,650 poultry birds and produced

3,008,150 stock of fish, under the Program.

The benefitting farmers operated under 44 anchor companies in 26 states of the Federation.

The range of commodities eligible for financing under the ABP was expanded from 4 in 2016 to 9 in 2017 due to new risk-sharing models introduced to make the Program more attractive for prospective anchor companies and financial institutions.

These commodities included rice; wheat; maize; soya bean; groundnut; cassava; cotton;

poultry products and fish. At end-December 2017, 24 anchor companies had expressed interest in participating in the 2017/ 2018 dry season farming under the ABP.

From inception in 2015 to end-December 2017, a cumulative sum of N55.5 billion had been disbursed through 10 PFIs to finance 256,305 smallholder farmers,

working with 69 anchor companies. Additionally, 883,657 and

2,650,968 direct and indirect jobs, respectively, had been created.

Repayments stood at N11.2 billion at end-December2017, resulting in

cumulative repayment of N11.6 billion,since inception of the Programme in

2015, the report stated.

76 thoughts on “Agric Loans Scheme Drops To 41,341

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