As you already know the current government of Nigeria always has one way or the other to support the agriculture sector and farmers.
CBN’s in conjunction with Federal Government set to give thousands of farmers over 300,000 naira Agricultural Credit Guarantee Scheme Fund (ACGSF)
But what is ACGSF and how to go about getting the fund
About Agricultural Credit Guarantee Scheme Fund (ACGSF)
The ACGSF was established in 1977 and started operation in 1978 with N100M shared capital and N85.6 million paid-up capital as of then. it was shared 60/40 between the FG and CBN respectively. The Central Bank Of Nigeria holds 40% of the capital while Federal Government holds 60% of it.
Scheme capital was increased to N3 billion in 2001.
This fun guarantees credit facilities to farmers to increase productivity in the agriculture sector.
Three innovations were launched under the ACGSF to adequately distribute the funds to farmers in need.
AgriculturSelf-Help Group Linkage Banking, Trust Fund Model, and Interest Draw Back are all under Credit Guarantee Scheme Fund (ACGSF)
This disbursement was done through 6 microfinance banks and commercial banks operating in the state.
Mr. Chiedozie Okonjo, The branch controller of the bank in the state made this known on Friday at Best Farmer and Participating Financial Institutions (PFI) awards.
He also emphasized that the scheme guarantees 75 percent of the amount in default to the lending financial institutions as an incentive and also the borrower is entitled to get an interesting drawback of 40 percent of the total accrued interest paid when paid within the stipulated time.
This scheme was set to reduce the challenges farmers are facing financially and also reduce the risk the participating banks facing
the head of the Development Finance Office Mr. Linus Nwokolo also pleaded to all the financial institutes in the state to take advantage of the ACGSF fund and disburse it to the appropriate agriculture sector of the economy in other to help the farmers produce more.
During the awards, Umuchinemerem emerged first and LAPO Microfinance banks emerged second runners-up while the Kenechukwu Microfinance Bank was crowned the best PFI of the year.
Also, Mr. Matthew Agbo clinched the best farmer award, and Ogbodo Ngozi and Charles Eneje were awarded the first and second runners-up respectively
Requirements And Forms Needed For Agricultural Credit Guarantee Scheme Fund
Though basically The various forms are normally completed in the operation of the Scheme by banks. You can check the list below:
- Application for credit facilities
- Application for Guarantee
- Application for Enhancement
- Application for Extension
- Notice of Default
- Guarantee Claims; and
- Annual Returns
For more information and to download forms you can visit the CBN official website about ACGSF