…..As Guidelines for Scheme is Released
By Dayo Omoogun
The Central Bank of Nigeria on Tuesday released the guidelines for operating the Private sector- Led Accelerated Agriculture Development, P-AADS, which it recently initiated.
The scheme which is one of the several initiatives in pursuit of its development mandate is targeted at accommodating 370,000 youths in the Agricultural sector, with a view to achieving a consistent cut in unemployment and improving the stats in food sufficiency.
According to the guidelines released by the Apex bank, those eligible under the scheme are agro-processors, engaged in backward integrations, prime anchor and commodity association under the Anchor’s Borrowers Program, as well as corporate or individual owners of contiguous land readily available for clearing and cultivation.
In addition to the above criteria, they must possess good title for the contiguous land of not less than 20 hectares, provide required collateral, have proven capacity and bankable program, and good credit record.
Some of the commodities okayed by the guidelines include rice, maize, cassava, cotton, wheat and tomatoes. Others are Cocoa, Oil palm, Sorghum, Fish, Poultry, Livestock and Dairy.
Maximum loan per obligor is N2billion, at an interest rate of 5% up to February 28, 2021. From March 2021, a 9% interest rate will apply.
The loan tenure for annual crops is a maximum of 6 years with a 6 months moratorium, and 10 years for perennial crops with a moratorium of 1 year.
The guidelines contained in a circular signed by the CBN’s Director of Development Finance, Yusuf Yila Phillip, stated among other things, the remedies for various infractions under the scheme.
These include, barring of any Participating Financial Institution (PFI) involved in the diversion of funds, from further participation, effecting appropriate BOFIA penalties for lateness in filing returns or non-rendition, amongst others.