… to empower 370,000 youths in agric sector
The Central Bank of Nigeria, on Tuesday, released the guideline for the disbursement of the Agribusiness/Small and Medium Enterprises Investment fund for Non-interest Financial Institutions.
The fund was set up by the Bankers Committee at its 331st meeting, held on February 9, 2017, to improve access to affordable financing for Micro, Small and Medium Enterprises, particularly those operating in the informal sector of the economy.
As a commitment to the successful implementation of the scheme, all Deposit Money Banks, voluntarily agreed to set aside and contribute five per cent of their Profit After Tax annually to finance eligible projects under the scheme.
In the guideline, the apex bank directed PFIs to
develop operational, credit and accounting framework for the scheme, transfer the financed asset through any of the CBN-approved non-interest financing contracts to the investee company and maintain records of their investment in the appropriate books.
The PFIs are also to conduct due diligence and appraise the applications to be submitted to Special Purpose Vehicle, remit monthly principal settlements to the CBN and retain 2.5 per cent mark-up on the financing and remit 2.5 per cent to the Fund.
Also, the CBN released the non-interest guideline for the Accelerated Agriculture Development Scheme.
It said in the guideline that the objective of the programme was to engage a minimum of 370,000 youths in agricultural production across the country over the next three years.
It said the move would help to reduce the level of unemployment among the youths in the country, and guarantee food security.
The guideline would also enable the CBN to provide short and medium-term funding windows for the implementation of the Scheme.
The guideline stated that the target group would be Nigerian youths within the ages of 18 to 35 years, adding that state governments would mobilise prospective young farmers with representation from all senatorial zones.
To effectively implement the scheme, state governments and the Federal Capital Territory are to provide agricultural land in contiguous locations in all the senatorial zones.
The guidelines put the financing tenor at six months for grains and broiler production (rice, maize, soy bean); 18 months for cassava; 24 months for egg production and
ruminants; and five years for plantation crops among others.
They also put the average financing size at N250,000 per hectare for arable crops; N500,000 per unit for livestock; and N1.5m for plantation crops like cocoa, cashew and oil palm.
