Nigeria Update: CBN releases N596bn for 576 agric projects

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Nigeria Update: CBN releases N596bn for 576 agric projects

As of November 19, 2018, the total amount released by the Central Bank of Nigeria under the Commercial Agriculture Credit Scheme from inception to the participating banks for disbursement stood at N596.44bn for 576 projects.

Figures obtained from the CBN on Monday revealed that of the total number of projects, 34 were in respect of state governments.

It revealed that a total of N852.15m was guaranteed to 5,454 farmers under the Agricultural Credit Guarantee Scheme in the fourth quarter of 2018.

The amount represented a decrease of 40.1 per cent and 5.9 per cent below the levels in the preceding quarter and the corresponding period of 2017, it added.

Sub-sectoral analysis showed that food crops got the largest share, amounting to N369.54m (43.4 per cent), guaranteed to 2,373 beneficiaries; followed by mixed crop sub-sector, which received N162.75m (19.1 per cent), guaranteed to 1,710 beneficiaries, N138.44m (16.2 per cent) was guaranteed to livestock sub-sector in favour of 564 beneficiaries; while cash crop, fisheries and “others” sub- sectors got N105.28m (12.4 per cent), N58.82m (6.9 per cent), and N17.32m (2.0 per cent), guaranteed to 542, 175 and 90 beneficiaries, respectively.

Analysis of the states showed that 30 states and the Federal Capital Territory benefited from the scheme with the highest and lowest sums of N95.83m (11.3 per cent) and N1.99m (0.2 per cent) guaranteed to Ogun and Bayelsa states, respectively.

According to the apex bank, the cessation of rainfall led to widespread dryness across the country.

It stated that, “Agricultural activities in the review quarter, were dominated by harvest of tubers, grains and vegetables. In the livestock sub- sector, farmers continued with the breeding of poultry birds and fattening of cattle in anticipation of the end of the year sales. End-period headline inflation, on year-on-year and 12-month moving average bases for the fourth quarter of 2018 stood at 11.44 and 12.10 per cent, respectively.”

According to the report, the cessation of rainfall led to widespread dryness of severe- to-extreme intensity across the country in the fourth quarter of 2018.

Generally, it added that the predominant agricultural activities during the review quarter were the harvesting of tubers, grains and vegetables. It stated, “Pre-planting operations in preparation for dry season planting commenced. In the livestock sub-sector, farmers engaged in the fattening of cattle and stocking of broilers to take advantage of Yuletide season sales.”

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