Economic Diversification: CBN Provides N1.9bn Loan to 12,405 Farmers

The central bank is pushing ahead with diversification agenda, offers farmers cheap loans of 1.99 billion in an effort to speed up economic recovery and diversify the economy, according to a CBN report.

The report showed that the Central Bank of Nigeria provided 12,405 farmers a total of N1.99 billion loans under its Agricultural Credit Guarantee Scheme (ACGS) during the second quarter of this year.

The CBN set up the ACGS to boost the development of the agricultural sector and fast-track the diversification of the economy by providing cheap loans to farmers at a single digit interest rate.

The agricultural sector’s report prepared by the central bank, revealed that this amount represented a 21.6 percent increase from the previous quarter and aimed at enhancing national food security by effecting lower agricultural product prices and simultaneously increasing food supply.

Industrial analysis showed about N1.37bn goes to food crops with 9,607 beneficiaries and represent 68.5 percent of the sum, while livestock with 1,149 beneficiaries got N350.6 million and fisheries had 89.5 million.

A total of N83.9 million was apportioned to cash crops with 538 beneficiaries, mixed crop sub-sector which had N68.7m guaranteed to 414 beneficiaries, while N31.1m was guaranteed to 312 beneficiaries under a category referred to as “others.”

Also, the analysis revealed that 31 states and Federal Capital Territory benefited from the scheme, with Edo state getting the highest, N518 million (26 percent), while Taraba state got the lowest, N0.7 million (0.05 percent).