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Business

CBN launches Private Sector-led Accelerated Agriculture Development Scheme

The CBN has launched the P-ADDS initiative aimed at engaging 370,000 youths in agricultural production.

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Agricultural financing, GDP: Agriculture grows by 3.42% in Q4 report

The Central Bank of Nigeria, in line with its development mandate, has recently unveiled the Private Sector-led Accelerated Agriculture Development Scheme (P-ADDS) to complement the Accelerated Agriculture Development Scheme (ADDS), which is aimed at engaging 370,000 youths in agricultural production.

This is according to a recent notice by the CBN.

The P-ADDS is designed to complement ADDS by exploring private sector partnership to facilitate more rapid land clearing for production of key agricultural commodities.

What you should know

  • The broad objective of P-AADS is to facilitate increased private sector agricultural production of staple foods and industrial raw materials, as well as support food security, job creation, and economic diversification.
  • P-AADS shall be funded from the Anchor Borrowers’ Programme (ABP).
  • The maximum loan accessible under the Scheme shall be N2 billion per obligor. The facility shall be repaid from the Economics of Production (EOP), for cultivating on the cleared farmland.
  • Interest rate under the intervention shall be 5.0% p.a. (all inclusive) up to 28th February 2021. Interest on the facility from 1st March 2021 shall be 9% p.a. (all inclusive)
  • The loan tenor for annual crops is set at a maximum of six years with six months moratorium, while that of perennial crops are ten years with one year moratorium.
  • Repayment of the facility shall be made on instalment basis through the participating banks, which in turn remit payments to the CBN on quarterly or annual basis depending on the commodity.
  • The collateral to be pledged by participants under the Scheme shall be title of the cleared land and other acceptable collateral prescribed under the ABP. CBN shall bear 50% of the credit risk in the event of default by the participant.
  • For the flag off, thirteen agricultural commodities are eligible for consideration under the scheme, and they include rice, maize, cassava, cotton, wheat, tomato, poultry, fish, sorghum, oil palm, cocoa, livestock/diary, and any other commodities, as may be listed by the CBN from time to time.

Eligibility criteria

  • Be existing or new firms engaged in agricultural production with proven capacity and bankable proposal.
  • Possess acceptable title for contiguous lands of not less than 20 hectares.
  • Have good credit record.
  • Be able to provide the required collateral for participation.
  • Provide evidence of capacity to cultivate a focal commodity directly or engagement of farmers, including youths as in-growers or out-growers to cultivate on the land after clearing.

Why it matters

With the annual population growth rate of about 3%, recent empirical findings revealed that Nigeria’s population pyramid is bulging around the youth segment, with an estimated 75 per cent of the population identified to be aged below 35 years.

A large segment of this population can become meaningfully employed and make a living from agriculture, if opportunities in the sector is well harnessed, given its potential of employing over 70% of the nation’s workforce.

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Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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    Business

    CBN’s Emefiele vows to reject the continuous importation of maize in Nigeria

    The CBN has said that it will oppose all attempts to continue the importation of maize into the country.

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    Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results? 

    The Central Bank of Nigeria (CBN) has said that it will oppose all attempts to continue the importation of maize into the country.

    This is geared towards encouraging local production as the apex bank believes that maize farmers in Nigeria have what it takes to close the maize demand gap of over 4.5 million metric tonnes in the country.

    This was made known by the CBN Governor, Godwin Emefiele while speaking in Katsina on Thursday during the unveiling of the first maize pyramid and inauguration of the 2021 maize wet season farming under the CBN-Maize Association of Nigeria Anchor Borrowers’ Programme.

    READ: Nigeria must eat what we produce, agriculture is the way out – Buhari

    Emefiele said, “With over 50,000 bags of maize available on this ground, and others aggregated across the country, maize farmers are sending a resounding message that we can grow enough maize to meet the country’s demand.’

    He explained that the maize unveiled at the ceremony would be sold to reputable feed processors adding that this would in turn impact positively on current poultry feed prices, as over 60% of maize produced in the country were used for producing poultry feed.

    Emefiele said that the apex bank was ready to provide support to the youths that are willing to engage in agriculture and encouraged them to embrace agriculture.

    READ: Nigeria secures $1.2 billion loan from Brazil for agriculture modernization

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    Speaking at the event, the Katsina State Governor, Bello Masari, said the state had suffered a setback in agriculture as over 60,000 hectares of farmlands were uncultivated due to insurgency, which hindered farmers from gaining access to their means of livelihood.

    On his part, President Muhammadu Buhari, who was represented by the Kebbi State Governor, Atiku Bagudu, while unveiling the pyramids, reassured the farmers, processors and other value chain participants, of the support of government towards ensuring that they perform optimally.

    What you should know

    It can be recalled that in July 2020, the CBN included maize importation to its list of 41 items banned from assessing forex at the official market as it directed all banks/authorised dealers to immediately discontinue the processing of Forms M for maize/corn importation into the country.

    The apex bank in its circular said that this measure is aimed at increasing local production of the commodity, stimulating a rapid economic recovery, safeguarding rural livelihoods and increasing jobs.

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    Business

    FG releases N29.1 billion advance for deployment of Covid-19 vaccines

    The FG has announced the release of N29.1 billion to the NPHCDA as an advance for the operational cost of deployment of the Covid-19 vaccines.

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    Power: Mambilla Power Project not prioritised by Ministry of Power for 2021 Budget - Finance Minister

    The Federal Government has announced the release of N29.1 billion to the National Primary Health Development Agency (NPHCDA) as an advance for the operational cost of deployment of the Covid-19 vaccines.

    This is as the government has expressed its commitment to procuring 29.588 million doses of the Johnson & Johnson vaccine through the AVAT initiative, coordinated by AFREXIMBank,

    This disclosure was made by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed while speaking at ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar on Friday.

    What the Minister of Finance, Budget and National Planning is saying

    Ahmed in her statement said, “Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.

    “Already, the sum of N29.1bn has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1bn represents about 52 percent of the amount required over 2021-22”, she said.

    Mrs Ahmed stated at the 18th General Assembly of CABRI that the World Bank has indicated willingness to provide needed facilities in support of the country’s Covid-19 vaccination plan.

    Considering key elements of Nigeria’s vaccine financing strategy, she said that the government is working on a supplementary budget to provide for the cost of vaccine procurement and delivery

    She said, “The Federal Ministry of Health plans to vaccinate 70 per cent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years.”

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    She noted that the nation has received commitments from COVAX for Covid-19 vaccines that could cover 43.1 million of the eligible population, as donations from some development partners.

    On the impact of the Covid-19 pandemic and the oil price crash on the Nigerian economy, she noted that prior to the pandemic, implementation of the Economic Recovery and Growth Plan 2017-20, prudent resource management and fiscal policy implementation had resulted in 11 consecutive quarters of GDP growth, with GDP growth rising from 1.91% in 2018 to 2.27% in 2019.

    Mrs Ahmed also noted that “the government had begun the process of moving our economy away from its primary dependence on oil for revenues and foreign exchange, and we’re making steady gains in addressing infrastructure and human capital challenges.”

     

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