Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

Distribution of loans under ACGSF declined by 31.62% in 2 years – NBS 

Chidi EmenikebyChidi Emenike
2 years ago
in Business News
Banks guaranteed N3.6 billion loans to farmers under the ACGSF - CBN, Agriculture vs Unemployment: Buhari's farming policy has a major flaw, Does sending "able-bodied youths" to the farms increase productivity?, Agricultural financing, Top AgriTech deals currently on sale in Nigeria – June 2020, Laws that govern the Nigerian Agricultural Sector
Share on FacebookShare on TwitterShare on Linkedin

According to a recent report published by the National Bureau of Statistics (NBS), the distribution of loans under the Agricultural Credit Guarantee Scheme Fund (ACGSF) has maintained a downward trend since 2017.

This is despite concerted efforts by the Federal Government to drive investment and growth in the country’s agricultural sector.

The recent report showed that fund distribution under ACGSF declined by approximately 31.62% from N11.90 million allotted in 2017 to N8.14 million in 2019. 

The significant decline was also recorded both in terms of the volume and value of loans under the scheme over the period under view. For example, the volume of loans worth N100,000 and below declined by 37.14% from 26,825 in 2017 to 16,862.

 Source: NBS Report 

In case you missed it 

Recall that Nairametrics had earlier reported CBN’s plan to increase funding in the agricultural sector from 4% to 10% of the entire credit in the banking system. CBN revealed that the country needs to increase its level of bank credit to the agricultural sector by over 50% within the next 4 years to boost food production. 

What you should know

The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established by Decree No. 20 of 1977 and commenced business in April 1978. Its original share capital and paid-up capital were N100 million and N85.6 million respectively. The Federal Government holds 60% and the Central Bank of Nigeria holds 40% of the shares. The Capital base of the scheme was increased to N3billion in March 2001. The fund guarantees credit facilities extended to farmers by banks, up to 75% of the amount in default net of any security realized.

What this means 

This indicates a decrease in the lending portfolio of banks to agriculture due to perceived risk. This has been the trend since the deregulation of the financial system unlike between 1978 and 1989 when the government stipulated lending quotas for banks under the Agricultural Credit Guarantee Scheme (ACGSF). To reduce the declining trend, several innovations and products were introduced under the scheme such as; 

  • The Self-Help Group Linkage Banking 
  • Trust Fund Model
  • Interest Draw Back 

Why this matters 

Given the present regime’s drive to diversify the economy and ensure food sufficiency and security, all hands will now be on deck in achieving this goal.

Related

Tags: ACGSFAgricultural Credit Guarantee Scheme FundNational Bureau of Statistics

Comments 1

  1. Gbinde Bridget says:
    October 12, 2020 at 9:11 am

    How do I access this loan to enable enlarge my farm

    Reply

Leave a Reply Cancel reply

HFM
Mega Millions
Mega Millions
Standard
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Emefiele replies Kano State Governor, says he doesn’t understand connection between cash swap and security issue
  • 9 people including children killed as container falls on a bus at Ojuelegba, Lagos
  • Currency Swap Deadline: CPPE says 10-day extension is inadequate

Follow us on social media:

Recent News

Emefiele replies Kano State Governor, says he doesn’t understand relationship between naira redesign and security issues

Emefiele replies Kano State Governor, says he doesn’t understand connection between cash swap and security issue

January 29, 2023
9 people including children killed as container falls on a bus at Ojuelegba, Lagos

9 people including children killed as container falls on a bus at Ojuelegba, Lagos

January 29, 2023
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Lifestyle
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds

© 2023 Nairametrics