Central Bank of Nigeria CBN has guaranteed a total of N1.101 billion to 4,815 farmers under the Agricultural Credit Guarantee Scheme (ACGS) in February this year. This represented an increase of 4.3 and 55.7% above the levels in the preceding month and the corresponding month of 2013, respectively.
A sub-sectoral analysis of the loans guaranteed indicated that the food crop sub-sector had the largest share of N665.9 million or 60.4% guaranteed to 3,714 beneficiaries; the livestock sub-sector received N230.5 million or 20.9% for 609 farmers.
The CBN report showed that N79.1 million or 7.2% went to Mixed crops sub sector for 257 beneficiaries; cash crops sub-sector got N48.2 million or 4.4% for 92 farmers, while fisheries sub-sector received N44.9 million or 4.1% guaranteed to 74 beneficiaries.
“Others” share was N33.2 million or3.0% for 69 beneficiaries. Analysis by state showed that 32 states and the Federal Capital Territory (FCT) Abuja benefited from the scheme during the review month, with the highest and lowest sums of N223.3 million or 20.3% and N0.8 million or 0.07% guaranteed to Kogistate and Ebonyistates, respectively.
The report however showed that 20 banks participated in the disbursement of the fund. United Bank for Africa (UBA) disbursed N41.80 billion for 35 projects while Zenith Bank, First Bank Nigeria Plc and Unity Bank Plc distributed N34 billion, N26.10 billion and N22.30 billion respectively to 23projects, 64 and 25 projects.
Others are Union Bank of Nigeria Plc, Sterling Bank, Stanbic IBTC and Access Bank which disbursed N18.20 billion, N13.30 billion, N11.10 billion respectively to 21 projects, 22, 29 and 13 projects.
The apex bank under the Commercial Agriculture Credit Scheme (CACS) released a total of N228.2 billion to participating banks for disbursement for 307 projects/promoters at the end of February 2014.
The report however said that the major agricultural activities in the southern states were harvesting of tree crops and clearing of land for the 2014 wet season farming. In the Northern states, activities were dominated by irrigation of vegetable and cereal crops. In the livestock sector, farmers were involved in breeding of livestock to replace stock sold during the December 2013 festivities.