Twenty participating deposit money banks (DMBs) in the Commercial Agriculture Credit Scheme (CACS) recorded a total disbursement of N272.4 billion in February on 351 projects
Agric lending under the Commercial Agriculture Credit Scheme (CACS), managed by the Central Bank of Nigeria (CBN), stood at N272.4 billion in February, on 351 states/projects as against N266.01 billion recorded in January 2015 on 347 states/projects. According to the CBN Economic Report for February, 2015, a total of N135.5 million was guaranteed to 5,008 farmers under the Agricultural Credit Guarantee Scheme (ACGS) in February 2015.
The amount represented an increase of 55.1 and 3.1 per cent above the levels in the preceding month and the corresponding period of 2014, respectively. Sub-sectoral analysis showed that food crops obtained the largest share of N877.3 million (77.3 per cent) guaranteed to 3,933 beneficiaries, livestock had N112.3 million (9.9 per cent) guaranteed to 306 beneficiaries, Fisheries sub-sector got N62.3 million (5.5 per cent) guaranteed to 185 beneficiaries, and mixed crop received N49.3 million (4.3 per cent) guaranteed to 255 beneficiaries.
Sub-sectoral analysis showed that food crops obtained the largest share of N877.3 million (77.3 per cent) guaranteed to 3,933 beneficiaries, livestock had N112.3 million (9.9 per cent) guaranteed to 306 beneficiaries, Fisheries sub-sector got N62.3 million (5.5 per cent) guaranteed to 185 beneficiaries, and mixed crop received N49.3 million (4.3 per cent) guaranteed to 255 beneficiaries.
The CBN report further stated that a total of N12.5 million (1.1 per cent) was guaranteed to 69 beneficiaries in the cash crop sub-sector, while ‘Others’ received N21.7 million (1.9 per cent) guaranteed to 260 beneficiaries. Further analysis by state showed that 29 states and the Federal Capital Territory benefited from the Scheme in February 2015, with the highest and lowest sums of N254.5 million (22.4 per cent) and N1.8 million (0.16 per cent) guaranteed to Edo and Benue States, respectively.
Furthermore, the report revealed that the total amount released by the CBN under the CACS to the participating banks for disbursement stood at N272.36 billion for three hundred and fifty one (351) projects/promoters. “During the month of February 2015, the predominant agricultural activity across the country was preparation of land for early planting. Other activities in the Southern and Northern States included: harvesting of tree crops; irrigation-fed vegetable and cereal production, respectively. “In the livestock sector, farmers were involved in raising the stock of livestock to replace those sold during the festivities.
Though the incidence of insurgency subsided in February 2015, agricultural activities remained subdued in most areas of Southern Yobe and Borno States as well as Northern Adamawa State.,” the report stated. United Bank for Africa Plc, has maintained the lead among the participating 20 deposit money banks (DMBs) in the scheme. The CACS was established by the Federal Government to finance large ticket projects along agricultural value chain in line with Governments plan to diversify the economy and create employment among the citizens.
Under the scheme, State governments, including the Federal Capital Territory (FCT) can access a maximum of N1 billion each for on-lending to farmers’ cooperatives or other areas of agricultural intervention. The CACS is being administered at a single digit rate of 9 per cent to beneficiaries and will run for a period of 16 years (2009-2025).
According to CBN in its Economic Report for February 2015 report, UBA topped the list of participating banks with disbursement of N45,76 billion on 37 projects, followed by Zenith which had 31 projects with a total disbursement of N46.34 billion. First Bank had 25 projects sponsored with N24.18 billion as at the reporting period.
At the bottom of the table were Mainstreet, Wema and Enterprise Banks which had N2.00m, N1.13 and N9.50 billion disbursed on 1, 7 and 6 projects respectively. The report further revealed that Agriculture made significant contribution to non-oil foreign exchange earnings during the period, amounting to $83.38 million, coming second after industrial sector $368.62, but beating manufacturing, food products, minerals and transport sub-sectors.
The CBN 2015 Economic Report stated, “Provisional data indicated that total non-oil export earnings, at US$513.22 million, indicated a decline of 33.1 per cent below the level in the preceding month, but showed an increase of 20.4 per cent over the level in the corresponding period of 2014. “The development reflected, largely, the 44.02 per cent fall in export receipts from industrial sectors.
A breakdown by sectors showed that proceeds from industrial, agriculture, manufactured, food products, minerals and transport sector sub-sectors stood at US$368.62 million, US$83.58 million, US$37.19 million, US$13.38 million, US$10.45 million and US$0.07 million, respectively, during the review month. “The shares of industrial, agriculture, manufactured, food products and minerals sub-sectors in non-oil export proceeds were 71.8, 16.3, 7.3, 2.6, and 2.0 per cent, respectively.” On sectoral utilisation of Foreign Exchange, Agriculture accounted for the least – 0.37 per cent of the total foreign exchange disbursed in February, which was $3.58 billion.
The highest allocation went to the invisible sector which accounted for 43.95 per cent, followed by minerals and oil sector – 19.05 per cent. “Other beneficiary sectors, in a descending order included: industrial sector (18.14 per cent), manufactured product (8.53 per cent), food products (7.93 per cent), transport (2.03 per cent) and agricultural products (0.37 per cent),” the report stated.