The Central
Bank of Nigeria (CBN) has so far released a total sum of N501.697 billion under
the commercial agriculture credit scheme (CACS).
Information
obtained from the bank by Eyes Of Lagos showe
d that the fund was deployed to
boost 526 agriculture projects across the country.
The document
also showed that total repayment under the scheme was N251.156 billion in
respect of 526 projects, out of which 281 projects had fully been repaid as at
the end of September 2017.
It was
gathered that outstanding balance with lending banks was N250.541 billion as at
September 30, 2017.
The CACS was
established by the federal government and is financed from the proceeds of the
N200 billion three-year bonds raised by the Debt Management Office (DMO).
The fund is
made available to participating banks to finance commercial agricultural
enterprises.
Speaking
with our correspondent on the sidelines of a three-day workshop for CACS
agriculture desks officers of commercial banks in Lagos organised by the
Nigeria Agriculture Insurance Corporation (NAIC), project management officer of
the CBN, Mr. Ademuyiwa Adeleke, expressed worry about frequent abuse and
negligence of laid down policies and CACS guidelines.
Adeleke
disclosed that banks have flouted repatriation of loans and often failed to
carry out due diligence of projects before disbursement of loans.
He warned
that CBN would not hesitate to apply appropriate sanctions against banks that
fail to observe due process.
In her
opening remarks, the managing director of NAIC, Folashade Joseph, said the
deposit money banks and other financial institutions have been NAIC’s major
distribution channel over the years.
Joseph said
the deposit money banks serve as credit providers, while NAIC acts as risk
management service provider.
According to
her, NAIC as a major stakeholder in the Central Bank of Nigeria CACS’
initiative has repositioned itself to improve on its product offerings and
services with a vision of “remaining the pioneer and leader in the
agro-investment risk management sphere” in Nigeria.
“Risk
management remains an integral part of any modern day agricultural financing
model, as such the Central Bank of Nigeria has deemed it fit to ensure that any
agricultural investor accessing the CACS facility must have the project insured
by NAIC as stated in the current lending guidelines for the CACS loan”, she
said.
This, Joseph
noted, is to protect the project from failing due to unforeseen risks.
She said,
“This capacity building program is to enlighten the agricultural desk officers of
banks on how to implement the risk management component of the CACS.
“Furthermore,
NAIC is committed to forging the appropriate partnerships with deposit money
banks in the fulfillment of their mandate by the provision of the appropriate
risk management services to the agricultural investors being financed by the
banks”.
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