The Central Bank of Nigeria (CBN) has rolled out guidelines for the private sector in agriculture to access loans under the Federal Government’s Accelerated Agriculture Development Scheme (AADS).
The apex bank introduced the Accelerated Agriculture Development Scheme (AADS) to engage 370,000 youth in agricultural production, in collaboration with state governments.
It specified that beneficiaries under the Private sector-led AADS (P-AADS) must be engaged in agricultural production and able to fulfill all other loan obligations including presentation of collateral and a good credit record.
The bank made this known on Tuesday in a release signed by its Director, Development Finance Department, Mr. Yusuf Yila Philip.
“Private sector-led AADS (P-AADS) participants must be existing or new firms engaged in agricultural production with proven capacity and bankable proposal; possess acceptable title for contiguous lands of not less than 20 hectares; have good credit record; be able to provide the required collateral for participation; and provide evidence of capacity to cultivate a focal commodity directly or engagement of farmers, including youths as in-growers or out-growers to cultivate on the land after clearing,” it stated.
The guidelines also identified crops eligible for the scheme, namely; rice, maize, cassava, cotton, wheat, tomato, poultry, fish, sorghum, oil palm, cocoa, livestock and dairy.
The items are, however, subject to periodical review, the release added.
On collateral presentation, the bank noted that the title of the cleared land and other acceptable collateral prescribed under the Anchor Borrowers Programme (ABP) would be accepted.
According to the bank, a maximum loan of N2 billion per obligor is issuable, as it would be repaid on installment, taking into account the Economics of Production of each cultivated crop.
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