How to Access New CBN Agric Funds

How to Access New CBN Agric Funds
How to Access New CBN Agric Funds

How to Access New CBN Agric Funds – The Central Bank of Nigeria (CBN) has re-issued guidelines to non-interest financial institutions under its agribusiness, small and medium-sized enterprise investment scheme (AGSMEIS) and micro, small and medium-sized enterprise development fund (MSMEDF).

This was announced by the Supreme Bank on its website on Tuesday. The guidelines also include the Accelerated Agricultural Development Scheme (AADS) and seven other intervention schemes.

How the AGSMEIS works / How to Access New CBN Agric Funds 

* CBN will create a fund known as ‘AGSMEIS Non-Interest Fund’ which will be housed in a dedicated bank account.

* Each non-interest-bearing deposit bank (full or window) had to set aside 5% of its annual profit after tax (PAT) as a contribution to the fund.

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* Each non-interest-bearing deposit bank was also required to transfer its contribution to the CBN 10 business days after the annual general meeting (AM) of the participating bank.

* Eligible activities under the scheme are activities in the agricultural value chain, which include production, supply of raw materials, storage, processing, logistics and marketing.

* Others include SMEs in the real sector, including manufacturing, ICT, mining, the petrochemical and creative industries, as well as other activities that CBN may sometimes anticipate.

Also Read: Opportunities at Sasakawa Agricultural Organizations

How to access New CBN Agric funds

The application for funds will be categorized into three broad sections. They are part of debt, equity and growth.

Debt comprises 50% of the fund which will be disbursed to eligible businesses by non-interest deposit money banks as finance.

* Purchased property will be registered with the National Collateral Registry (NCR).

* Financial limit: N10,000,000

* Mark-up: 5% per year

* Duration: up to 7 years (depending on the nature / time of pregnancy

* Mortuary: Maximum 18 months for principal and 6 months on mark-up.

Also Read: Africa AgTech & Insurance $25,000 Challenge

Documentation requirements for New CBN Agric fund

* Completed application form.

* Bank Verification Number (BVN).

* Certificate of training from a recognized entrepreneurial development organization (EDI) or proof of membership of an organized private sector association.

* Letter of introduction from any of the following: clergy, village head, district head, traditional ruler, senior civil servant, etc. (for individuals only, for micro enterprise).

* Proof of registration of business name or certificate of incorporation and filing of annual return (where applicable) in compliance with the provisions of Companies and Allied Matters Act (1990).

Previous story of New CBN Agric fund

Last month, CBN announced that it had unveiled a framework that would integrate a non-interest window into all of its intervention programs aimed at supporting businesses and families negatively affected by the COVID-19 epidemic. Have happened.

In a statement, the apex bank said the merger would focus primarily on its Anchor Lenders Program (ABP) as well as the Targeted Credit Facility (TCF).

Why it’s important: The scheme will be for start-ups, business expansion or revival of ailing companies and will follow the revised provisions of BOFIA (1991) and the principles governing NIFIs.

“MSMEDF’s aim for NIFIs guidelines is to channel low return funds to the MSME sub-sector of the Nigerian economy through partner financial institutions (PFIs) to increase MSMEs’ access to financial services.

“Similarly, the non-interest guidelines for AADS aim to reduce youth unemployment in the country, to include at least 370,000 youth across the country in agricultural production between now and 2023,” it added. Is

While MSMEDF’s specific objectives for NIFIs are to increase the productivity and output of micro-enterprises, job creation and inclusive growth, AADS’s objectives are to increase agricultural productivity towards food security, job creation and economic diversification.

* It targets Nigerian youth between the ages of 18 and 35, seeking to promote coordination between state governments, the CBN and other stakeholders in the agricultural value chain in each state.

* To increase employment generation in the agriculture sector, focusing on two crops where the states have comparative advantage.

* Revised Guidelines of Real Sector Support Facility (RSSF) (V3); Real Sector Support Facility (RSSF) among others.

Method of Application

The application forms can be obtained at the nearest Bank of Agriculture in all the 36 states and the Federal Capital Territory (FCT), Abuja. Interested persons should approach the bank for application.

How to Access New CBN Agric Funds
How to Access New CBN Agric Funds