31,666 Small-scale Farmers Get N5.9bn ACGSF Facility

The Central Bank of Nigeria (CBN) has said a total of total of 31,666 loans valued at N5.92 billion were guaranteed under the Agricultural Credit Guarantee Scheme Fund (ACGSF) even as farmers benefiting from the scheme have called for an increase in the amount they can access.

The ACGSF, which was established in 1977, was to help facilitate access to finance to farmers in the country.

Speaking at the ACGSF Farmers Awards ceremony held at the CBN office in Lagos, the acting branch controller of the apex bank, Nnaemeka Ukanyirioha, noted that, despite the challenging times the country has faced in recent times, it has continued to ensure facilitating access to finance for operators in the agricultural sector.

He noted that, under the ACGSF, the CBN had guaranteed “a total of 31,666 loans valued at N5.92 billion” in 2021. He explained that the award was to reward participants under the scheme who have shown exceptional promise and dedication to growing our agricultural sector despite the numerous challenges faced.

“The previous year was particularly difficult with businesses trying to recover from the after effects of a global pandemic. This further underscored the importance of a nation’s ability to feed itself.

“It is evidence that our commitment in rebuilding our agricultural might as a nation is crucial not only for our subsistence but also our economic relevance on a global scale.

“These awards are not only a reflection of our commitment to agricultural development but also is in line with our core values as an organization. As the Bank through the Development Finance Department continues to design and implement measures to improve food security by facilitating access to finance to the agricultural sector, we are confident that farmers will continue to grow and scale their businesses over time.”

Three farmers had emerged winners in the award. A poultry farmer, Tolulope Ogunimo had won the first prize, while Chima Elijah, a fish and ugwu farmer and Mrs Joy Njoku a snail and pig farmer had won the second and third prizes. LAPO Microfinance Bank also won the best participating financial institution.
Responding to the award, Ogunnimo, who had won the second prize in 2021, appreciated the efforts of the CBN in growing the capacity of operators in the agricultural sector through access to finance.

He however urged the apex bank to increase the amount that can be accessed under the scheme saying inflation had eroded the value of the amount that they are currently able to access.

“We urge the CBN to help and tweak the amount we is guaranteed upward. We are testimonies to the fact that it is possible to collect money and be able to turn it around and do something good.

“Last year, I came second and this year I was surprised when they said I won first place. I have been able to move from just farming to value addition. So because farmers are usually trapped in that angle of production. We have to go beyond production and we have to be sustainable,” he pointed out.
Meanwhile, representative of the Lagos state government Agric Business department, Mr Olushina Shobande, noted that, the CBN Development Finance Department, has continuously partenered with the state in its struggle to “ensure that we close the gap between the production local production and the consumption in Lagos state.

“Lagos State is limited by land mass. So it is virtually impossible for us to produce everything that we eat in Lagos state. So we are currently on 20 per cent of our total consumption.

“We are striving by implementing agricultural roadmap within the year 2021 and 2025 to ensure that we are up to 40 per cent while we ensuring that we give our farmers and other stakeholders the needed input at subsidised rates, through our employment programme.

“Anually we will give them grants every year to ensure that we increase production. We rely heavily on CBN to provide the financial support through the single digit rate which is the cheapest you can get in the country.”