The Central Bank of Nigeria (CBN), has announced that the Agricultural Credit Guarantee Scheme Fund (ACGSF) Amendment Act assented to by President Muhammadu Buhari on June 24, 2019, has increased the share capital of the fund to N50 billion from N3 billion.
The apex bank, in a document entitled, “Agricultural Credit Guarantee Scheme Fund (Amendment) Act 2019,” disclosed that complete agricultural value chain financing is now allowed under the ACGSF Amendment Act 2019.
The CBN said: “Under the Agricultural Credit Guarantee Scheme Amendment Act 2019, the sharing ratio is Federal Ministry of Finance (60): Central Bank of Nigeria (40).
“The maximum for non-collaterised loan under the ACGSF Amendment Act 2019 is now N100,000. Under the amended Act, the maximum amount for collaterised loans granted to individuals, cooperative societies, and corporate entities is now N50 million, up from N10 million.
“Complete agricultural value chain financing is now allowed under the Agricultural Credit Guarantee Scheme Amendment Act 2019.
“The ACGSF Amendment Act 2019 now also includes the financing of production farm machinery, the implementation, and equipment for production, processing, storage, and transportation.”
The Act aimed to amend the ACGSF Fund Act Cap. A11 law of the Federation of Nigeria, 2004, to enhance the capital base, expand the coverage of the scheme, increase the size of the loanable fund, increase membership, and give more powers to the board and for related matters.”
It added that the Agricultural ACGSF Amendment Act 2019 now also includes the financing of production farm machinery, the implementation, and equipment for production, processing, storage, and transportation.