BY VICTORIA ONU, ABUJA
THE Central Bank of Nigeria, in line with its developmental mandate, on Tuesday, released the framework for the Private Sector-Led Accelerated Agriculture Development Scheme.
The CBN in the guideline said that interest rate under the intervention would be five per cent per annum up to February 28
2021, and nine per cent per annum from March 1, 2021.
The apex bank said the move would enable it to address the food security and youth unemployment challenges across the country.
Based on the analysis of the framework, the maximum loan accessible under the Scheme was pegged at N2bn per obligor.
The CBN said it was introducing the Accelerated Agriculture Development Scheme to engage 370,000 youths in agricultural production, in collaboration with state governments.
The Private Sector-Led Accelerated Agriculture Development Scheme was also developed to complement AADS by exploring private sector partnership to facilitate more rapid land clearing for the production of key agricultural commodities.
The specific objectives of the scheme are to fast-track land clearing for primary production of agricultural commodities; promote food security through the provision of large contiguous land for agricultural production across all states; and collaborate with agro-processors engaged in backward integration.
This would be by providing financing for extended land clearing in proximal locations for cultivating commodities for supply of industrial raw materials.
Others are to support other capable stakeholders interested in unlocking land for agriculture through appropriate financing; and engender job creation for individual farmers that will cultivate on the cleared land.
According to the guideline, agricultural commodities eligible for consideration under the Scheme are rice, maize, cassava, cotton, wheat, tomato, poultry, fish, sorghum, oil Palm, cocoa, livestock/dairy and any other commodities as may be listed by the CBN from time to time.
The facility is expected to be repaid from the Economics of Production for cultivating on the cleared farmland.
