2022 to 14,258, valued N1.748billion.
“To further encourage participants in the scheme, the ACGSF Board last year approved the increase of the Interest Drawback rebate for farmers and participants in the agricultural value chain from 40 per cent to 50 per cent to cushion the effect of the COVID – 19 pandemic. The increase took effect from January 1, 2022” Okon disclosed.
The ACGSF Scheme he said: “has proved relatively successful in de-risking the agricultural sector in Nigeria as evidenced in the number of loans guaranteed from inception to date”.
Aside from de-risking agriculture which makes it safe for banks to lend to farmers, Okon revealed that the benefiting farmers have between 85 per cent to 90 per cent repayment record.
Speaking more on loan recovery under the scheme, the ACGSF Chairman said “11,726 loans valued N801.058million were repaid under the Scheme in the FCT from the inception of the Scheme”.
These records, he said, “shows the determination of the farmers to utilize the opportunities offered by the scheme to empower themselves and improve their lots”.
The Federal Government and the Central Bank of Nigeria (CBN) both contribute to the Fund in the ratio of 60 percent and 40 percent respectively with the CBN doubling as the Managing Agent of the Scheme and the Secretariat of the ACGSF.
The Scheme encourages Deposit Money Banks (DMBs) and Microfinance Banks (MfBs)to lend to those engaged in agriculture by providing guarantees.
It mitigates risks associated with banks’ lending to agriculture by guaranteeing to pay banks 75 percent of the net amount in default in accordance with the provisions of the enabling Act.
Under the new ACGSF Amendment Act 2019 the maximum for a non-collateralized loan has increased from N20,000.00 to N100,000.00 and the maximum for a collateralized loan from N10 million to N50 million.
Speaking for the CBN, Ogbu Onyeka Michael, Branch Controller, CBN, Abuja said “the Best Farmer Award ceremony is more than a mere ritual of recognition for the best farmers but an expression of the CBN Management’s commitment to supporting hard work, innovation, and productivity in the Agricultural value chain”.
“To this end, the CBN challenges Nigerian farmers to explore our various agricultural interventions aimed at enhancing value addition to their output towards attaining food self-sufficiency, provision of raw materials to our manufacturing industries and also for export, which ultimately assists in diversifying and improving the foreign exchange earnings base of our economy”.
IF Green Industries & Investment Limited emerged winner of national best farmers award. Located in Lagos, IFGreen processes cassava into industrial raw materials such as foods and graded starch.
The firm secured N8.050 million from Access Bank PLC and was able to pay back within stipulated time frame. It won a N1 million cash prize and a plaque.
The second runner up was Almustapha Maigwandu farms limited. Located in Kebbi state, it secured N1.6 million from Lapo MfB and was also able to pay back within stipulated time. It received N750,000 cash prize and a plaque, while Wuntin Dada Agro farms limited based in Bauchi state, emerged as the second runner. It received a cash prize of N500,000 and a plaque. It assessed N15 million from Sterling Bank and was able to repay within the expected time.
Sterling bank emerged as the 2021 ACGSF best participating financial institution of the year in the national category.