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CBN Releases N607bn Agriculture Credit for 587 Projects

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  • CBN Releases N607bn Agriculture Credit for 587 Projects

The Central Bank of Nigeria has released a total of N607.87bn credit to selected Deposit Money Banks to disburse for 587 agricultural projects, latest figures from the CBN have shown.

In its most recent economic report, the apex bank stated that the money was under its Commercial Agriculture Credit Scheme, adding that a total of N345.06bn had been repaid by beneficiaries of the scheme.

The bank further noted that its agriculture credit guarantee to farmers increased by 98 per cent within the space of one month to N342.7m.

It said, “At end-April 2019, the total amount released by the CBN under the Commercial Agriculture Credit Scheme to participating banks for disbursement amounted to N607.87bn for 587 projects, while total amount repaid stood at N345.06bn.”

In its latest economic report for April 2019, the CBN stated that Zenith Bank Plc, UBA Plc, Sterling Bank, and First Bank of Nigeria disbursed the highest amount to beneficiaries of the scheme.

The banks disbursed N122.66bn, N83.06bn, N72.17bn and N52.52bn, respectively, with 20 banks participating in the agriculture credit scheme.

On the Agricultural Credit Guarantee Scheme, the CBN stated that ACGS guaranteed a total of N342.7m to 2,022 farmers in April 2019.

It said, “The amount represented an increase of 98 per cent and 22.1 per cent over the respective levels in the preceding month and the corresponding period of 2018, respectively.

“Sub-sectoral analysis showed that food crops got the largest share, amounting to N184.7m (53.9 per cent) guaranteed to 1,217 beneficiaries, followed by livestock, N48.3m (14.1 per cent) guaranteed to 191 beneficiaries.”

It added, “The sum of N42.6m (12.4 per cent) was guaranteed to mixed crops sub-sector, in favour of 329 beneficiaries. Cash crops, fisheries and others received N29.8m (8.7 per cent), N26.5m (7.7 per cent) and N10.8m (3.2 per cent), guaranteed to 189,55 and 38 beneficiaries, respectively.”

Analysis by states showed that 25 states and the Federal Capital Territory benefitted from the scheme in April 2019, with the highest and lowest sums of N46.6m (13.6 per cent) and N0.6 (0.2 per cent) guaranteed to Ogun and Kogi states, respectively.

On the agricultural sector as a whole, the bank stated that weather conditions in the Northern states were relatively drier in April 2019.

It stated that consequently, agricultural activities in the region were mainly preparation of land for the 2019 wet season farming.

“However, the Southern states experienced improved moisture as a result of the commencement of early rainfall, which led to planting activities in the region,” the apex bank said.

It added, “In the livestock sub-sector, herders continued with the migration of cattle to Southern states in search of greener pastures, while poultry farmers re-stocked birds to replace sales during the Easter festive season.

“Also, in a bid to control the spread of the contagious Bovine Pleuro Pneumonia cattle lung disease, which broke out in Kaduna State, infecting 1,850 cattle and killing 367 herds, the Kaduna state government immunised 215,000 cattle in the affected areas.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

NAIC Pays N1.7bn Claims to Farmers

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The Nigerian Agricultural Insurance Corporation (NAIC) said it paid a total of N1.7 billion claims to over 5,000 farmers in the past two years.

NAIC, which is the only federal government owned insurance company authorised to offer agric insurance services to farmers at subsidised rate, said a breakdown of the paid claims showed that it paid N856 million to insured farmers in 2019 and N848 million in 2020.

Commenting on the development, NAIC Managing Director, Mrs. Folashade Joseph, said the claims were paid to the farmers to cover losses incurred in the course of doing business.

Joseph, enjoined agricultural investors and lending institutions to continue to partner NAIC by taking agricultural insurance cover that will enable them remain firm in business despite unforeseen circumstances from weather conditions and other risks in order to realise the food security agenda of President Muhammadu Buhari.

She said the above-mentioned amount was shared among five million farmers who suffered various setbacks in their farms as a result of natural course.

According to her, the NAIC Agric Insurance Scheme was launched in 1987 by federal government to restore the confidence and productivity of Nigerian farmers who suffered losses as a result of natural disaster such as flood, drought, pest and diseases.

The NAIC boss explained that the essence of the sensitisation campaign embarked by the corporation was to let the farmers know and understand exactly what NAIC does, the importance of insurance, and make them understand how insurance works, how they can access NAIC products and services, how to process their claims, as well as what insurance stands to do for them.

“Agribusiness is evolving fast and so many risks are being thrown up, many new participants are coming into the business of agriculture, and the risks are on the increase if you look at them across the value chain, there is no so many participants so we need to keep sensitising the farmers and let them know we are serving them, and we need to know from them how to serve them,” she explained.

Speaking further, she said, “our assurance to farmers is that when they are insured and they suffer losses covered by any of the policies they purchased, including natural disasters and whatever, they will get paid for their losses, and that is the purpose of insurance and setting up NAIC.

“Our motor is ‘Plowing the Farmer Back to Business, Plowing the Farmers into Prosperity’, and we settle claims.”

She said NAIC currently deals with thousands of farmers (Small, Medium, and Large scale farmers) across the country, adding that the corporation serves farmers with investment as little as N100, 000, and at the same time serves multinational farmers.

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Banking Sector

UBA Organises Capacity Building Forum

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UBA Insider dealings

As part of its commitment to support the growth and sustainability of micro, small and medium-scale enterprises (MSME) in the continent, the United Bank for Africa (UBA) Plc, is set to organise the next edition of its UBA Business Series.

The UBA Business Series which is a monthly event, is an MSME Workshop as well as a capacity building initiative of the bank where business leaders and professionals share well-researched insights on best practices for running successful businesses, especially in the face of the difficult operating environment that dominates the African business landscape.

Through this initiative, UBA has been assisting with essential tips to help businesses re-examine their models and strategies and ensure that they stay afloat and remain thriving, a statement from the bank explained.

The topic for the next edition of the series is, “Managing Performance for Business Growth,” and it will be held today, via Microsoft Teams.

At this session, the Managing Director, Secure ID Limited, Mrs Kofo Akinkugbe, will be sharing useful tips and insights on the key strategies of performance management to boost business growth.

Akinkugbe is the founder of SecureID Nigeria, a MasterCard, VISA and Verve certified Smartcard Personalization Bureau and Digital Technology company. She currently serves as the Managing Director/CEO, Secure Card Manufacturing, – a Smartcard manufacturing plant producing high security identity cards and documents for the Banking, Telecoms and Public sectors across Africa and beyond.

UBA’s Head, SME Banking, Sampson Aneke said of Akinkugbe, “with her vast experience garnered over the years from various sectors, she will help business owners understand how performance management strategies can be effectively implemented to ensure business growth.”

He emphasised UBA’s commitment and deep passion for small businesses, which according to him, remains the engine of any developing economy adding, “We know small businesses are the backbone of the economy in every country. In many climes, businesses with fewer than 100 employees account for 98.2 per cent of all businesses. This no doubt captures the importance of SMEs to a thriving economy which is why UBA is committed to seeing them flourish.”

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Banking Sector

CBN to Extend Credit Risk Management System to OFIs

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In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.

According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.

The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.

In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.

“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.

“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.

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