The Scheme is a special credit intervention fund created by the Federal Government of Nigeria to fast track the development of the agricultural sector economy by providing credit facilities to commercial agricultural enterprises at a single-digit interest rate.
To apply, go to the official website https://cbn.gov.ng/agric_credit_scheme
The Scheme is a special credit intervention fund of originally N200billion created by the Federal Government of Nigeria to fast track the development of the agricultural sector economy by providing credit facilities to commercial agricultural enterprises at a single-digit interest rate.
The key agricultural commodities covered under the scheme are:
- Cash Crops: Cotton, Oil Palm, Fruit Trees. Rubber, Sugar Cane, Jatropha Curcas, and Cocoa.
- Food Crops: Rice, Wheat, Cassava, Maize/Soya, Beans/Millet, Tomatoes, and Vegetables
- Poultry: Broilers and Eggs Production
- Livestock: Meat, Dairy, and Piggery
- Aquaculture: Fingerlings and Catfish
- Feed-mills Development, Threshing, Pulverisation, and other forms of transmutation for value addition.
- Storage: Commodities, Agrochemicals, and Warehousing.
- Farm Input Supplies: Fertilizers, Seeds/Seedlings, Breeder Stock, Feeds, Farm equipment & Machinery.
- Marketing: Agricultural commodities under the focal investment areas
- Single-digit interest rate (9% all-in, max).
- Single obligor limit of up to N2 billion for medium and large-scale private sector enterprises and N1billion for state governments.
- The participating private sector entity must have a minimum farm asset base of N50million (excluding farmland).
- Irrevocable Standing Payment Order (ISPO) is required in the case of State Governments.
- Fund available till 2025.
- Loan tenor of up to 5 years.
THE VALUE PROPOSITION/GAIN:
- Funding is provided at a cheap cost.
- The longer tenor of the loan.
- Funding targeted specific agricultural production.
THE TARGET MARKET INCLUDES:
- Medium or Large Scale Commercial Farms involved in the cultivation of crops, rearing of livestock, fisheries, etc.
- Limited Liability Companies involved in agricultural production, storage, processing, marketing, and enterprise development.
- State Governments and the FCT (for on-lending/special intervention to small-scale farmers).