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Tuesday, September 1, 2020

FG raises agric credit scheme fund to N50bn

 


The Federal Government has raised the share capital of the Agricultural Credit Guarantee Scheme to N 50bn from N 3bn.


The Central Bank of Nigeria disclosed this in a document on Monday entitled ‘ Agricultural Credit Guarantee Scheme Fund ( Amendment ) Act 2019. ’


It stated that the ACGSF Amendment Act was assented to by the Federal Government on June 24, 2019.


According to the document , complete agricultural value chain financing is now allowed under the ACGSF Amendment Act 2019.


The CBN said , “ Under the Agricultural Credit Guarantee Scheme Amendment Act 2019, the sharing ratio is Federal Ministry of Finance ( 60) : Central Bank of Nigeria ( 40) .


“ The maximum for non - collaterised loan under the ACGSF Amendment Act 2019 is now N 100, 000. Under the amended Act , the maximum amount for collaterised loan granted to individuals , cooperative societies and corporate entities is now N 50m , up from N 10m .


“ Complete agricultural value chain financing is now allowed under the Agricultural Credit Guarantee Scheme Amendment Act 2019.


“ The ACGSF Amendment Act 2019 now also includes the financing of production farm machinery, the implementation and equipment for production, processing , storage and transportation. ”


The Act aimed to amend the ACGSF fund Act Cap . A 11 laws of the federation of Nigeria , 2004, to enhance the capital base , expand the coverage of the scheme , increase the size of the loanable fund , increase membership and give more powers to the board and for related matters .

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