The Central Bank of Nigeria (CBN) announced on Monday 31st August 2020 that The Federal Government has increased the share capital of the Agricultural Credit Guarantee Scheme from N3bn to N50bn. This was disclosed in a document titled ‘Agricultural Credit Guarantee Scheme Fund (ACGSF) (Amendment) Act 2019’. According to the document, the sharing ratio is between the Federal Ministry of Finance (60) and the CBN (40).
The ACGSF Amendment Act 2019 now contains “the financing of production farm machinery and also the implementation and equipment for production, processing, storage, and transportation”.
The CBN also said, “the maximum for a non-collateralized loan under the ACGSF Amendment Act 2019 is now N100, 000. The maximum amount for a collateralised loan granted to individuals, cooperative societies, and corporate entities is now N50m, up from N10m.”
The ACGSF Amendment Act 2019 also means that complete agricultural value chain financing is now allowed.
