The Central Bank of Nigeria (CBN) has stated that a total of 13,194 loans, valued ₦3.22 billion, were guaranteed under the Agricultural Credit Guarantee Scheme in the first half of 2022
This however indicates a decline when compared with 21,872 loans, valued ₦3.62 billion in the preceding period of 2021. This amounted to a decrease of 39.7 and 11.2 percent in the number and value of loans guaranteed, respectively.
A total of 11,773 loans, valued at ₦2.14 billion, were repaid at the end-June 2022, compared with 13,349 loans, valued ₦2.01 billion, repaid at the end-December 2021, reflecting a decrease of 11.81 percent in number and an increase of 6.47 percent in value of repaid loans.
This was contained in the apex bank’s current ‘Financial Stability Report, June 2022,’ which it released this week on its website.
The report in its breakdown of the various loans in the agricultural sector stated that the sum of ₦28.30 billion was disbursed in the first half of 2022, through the Commercial Agriculture Credit Scheme reflecting an increase of 113.26 percent, compared with ₦13.27 billion in the second half of 2021. A total of ₦32.86 billion was repaid in the review period, indicating a decrease of 31.51 percent, compared with ₦48.14 billion in the second half of 2021.
As regards the Anchor Borrowers’ Programme, the bank disclosed that the sum of ₦35.52 billion was disbursed in the first half of 2022 to 28,876 smallholder farmers for production of major agricultural commodities, compared with ₦246.67 billion disbursed to 679,776 farmers in the preceding period.
“A total of 128,579 hectares of land were cultivated, compared with 1,123,684 hectares in the second half of 2021, reflecting a decrease of 88.56 percent. The sum of ₦42.99 billion was repaid in the review period, compared with ₦196.48 billion in the preceding period, reflecting a decrease of 78.12 percent.”
On Accelerated Agriculture Development Scheme, the sum of ₦1.50 billion was disbursed in the first half of 2022, compared with ₦0.04 billion in the second half of 2021.
Repayments under the Scheme amounted to ₦4.37 billion in the review period, compared with ₦5.31 billion in the preceding period.
The sum of ₦6.20 billion was released for Paddy Agricultural Scheme in the review period, while no disbursement was made in the second half of 2021. There was no repayment as it was not due in the period under review, while the sum of ₦4.66 billion was repaid in the second half of 2021.
As for the National Food Security Programme, it stated that there were no disbursements in the review and preceding periods under the Programme. However, repayments of ₦2.03 billion were made in the first half of 2022, compared with ₦2.30 billion in the second half of 2021, indicating a decrease of 11.74 per cent.
Under the Small and Medium Enterprises and Industrial Policy Support which covers the Micro, Small and Medium Enterprises Development Fund, the CBN stated that there was no disbursement, compared with ₦0.69 billion disbursed in the second half of 2021.
A total of ₦2.52 billion was repaid in the review period,when compared with ₦2.81 billion in the second half of 2021, reflecting a decrease of 10.32 per cent.
Agribusiness/Small and Medium Enterprises Investment Scheme In the review period enjoyed the sum of ₦1.60 billion which was disbursed for 2,720 projects, compared with ₦22.92 billion disbursed for 8,538 projects in the second half of 2021. This indicated decreases of 93.02 and 68.14 percent in value and number of projects, respectively. Repayments in the review period amounted to ₦7.65 billion, compared with ₦1.16 billion in the second half of 2021, indicating an increase of 559.48 percent.
olusola Bello
