In line with the ease of doing business in Nigeria, the Central Bank of Nigeria is making access to agric loans easier with friendly policies.

CBN has made some guidelines for Non-Interest Financial Institutions under its Micro, Small, and Medium Enterprises Development Fund (MSMEDF) and Agri-Business, Small and Medium Enterprise Investment Scheme (AGSMEIS)

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How the AGSMEIS works
Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.

Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics, and marketing.


Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals, and the creative industry as well as other activities as the CBN may determine from time to time.

The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank. Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as a contribution to the Fund.


Steps to access fund
The application of the Fund shall be categorized into three broad components. They are debt, equity, and developmental components.
The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.
Assets purchased shall be registered with the National Collateral Registry (NCR).
Financing limit: N10, 000,000
Mark-up: 5% per annum
Tenor: Up to 7 years (depending on the nature/gestation period of the
Moratorium: Maximum of 18 months for principal and 6 months on mark-up


Documentation Requirements
Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises only).
Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
Duly completed application form.
Bank Verification Number (BVN).
Certificate of Training from a recognized Entrepreneurship Development Institution (EDI) or evidence of membership in an organized private sector association.


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