Skip to main content

What You Need To Know And Do To Get CBN's Non-interest N432bn Loan

What You Need To Know And Do To Get CBN's Non-interest N432bn Loan

The Central Bank of Nigeria (CBN) has announced that funds up to N432 billion will be given to agric producers or farmers involved in rice, cotton, oil palm, tomato, cassava, poultry, fish, maize, cocoa and livestock/diary. The fund will be financial support for their agric produce which will come in handy during the 2020 wet planting season.

The financial support by CBN is part of the CBN Anchor Borrowers Programme for smallholder farmers. Over 1.1 million farmers in the value chains of nine commodities will benefit from the funds, with over one million hectares of farmland expected to be cultivated by the farmers.

According to the Director, Development Finance Department, CBN, Yila Yusuf, a collective output of 8.3 million metric tonnes of commodities will be produced with the loans given to the farmers. He revealed that “The bank’s funding of the Anchor Borrowers’ Programme for the 2020 season is the highest since the inception of the programme in 2015,”.

The Director of Corporate Communications for CBN, Isaac Okorafor, said farmers will be able to access and benefit from the funds after the policy has been issued, as work has been concluded on the funding document. The new development came on the back of the CBN stating that it would release a framework for the integration of non-interest windows in all its intervention programmes.

What You Need To Know And Do

As the CBN prepares to disburse the N432 billion to farmers dealing with rice, cotton, oil palm, tomato, cassava, poultry, fish, maize, cocoa and livestock/diary, you need to know those entitled to the funds and how such funds can be accessed. According to the Anchor Borrowers Programme framework, Sources say the Anchor Borrowers Programme is for smallholder farmers involved in the aforementioned commodities. It was stated that the farmers must be in groups/cooperative(s) of between 5 and 20 in order to enable ease of administration.

The money will be sent through designated participating financial institutions which include Deposit Money Banks (DMBs), Development Finance Institutions (DFIs) and Microfinance Banks (MFBs). It was further explained that the "loan amount for   each SHF shall be arrived upon from the economics of production agreed with stakeholders."

How To Repay The Loan To CBN

It's learnt that the smallholder farmers will use the harvested produce to repay the loan, delivering the produce to the Anchor, that is the private large-scale integrated processors that entered into an agreement with the smallholder farmers to off-take the harvested produce at an agreed price or as may be reviewed by the PMT. It was also revealed that the State Governments can act as Anchor upon meeting the prescribed conditions.

"Loans granted to the SHFs shall be repaid with the harvested produce that shall be mandatorily delivered to the Anchor at designated collection center in line with the provisions of the Agreement signed. The produce to be delivered must cover the loan principal and interest." The document said. Meanwhile, the loan tenor will be the gestation period of the identified commodities.

Click here to know more: https://www.cbn.gov.ng/out/2017/dfd/anchor%20borrowers%20programme%20guidelines%20-dec%20%202016.pdf

Labels:

Comments

Post a Comment

Popular posts from this blog

N-Power: FG extends Batch C enrolment Aug 8

FG extends Batch C N-Power enrollment to August 8 Add caption The Federal Government says the enrolment for Batch C scheme of the N-Power Programme which started on June 26 will now close on August 8. Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar-Farouq, who disclosed this via  Twitter on Sunday night, said over 5 million applications have been received for the scheme. The Federal Government plans to enrol 400,000 applicants in the Batch C scheme. Batches A and B of the programme who are about to exit the programme held a rally at the National Assembly Complex last week, requesting FG to employ them as well as pay them a grant of N600,000 each. Providing an update on the development, the minister said on Sunday, “I received the news of a protest at the National Assembly by N-Power Batch A and B beneficiaries who presented a list of demands which we are reviewing and will address as practically possible. “Let me reiterate that th...
Post a Comment
Read more

PRESIDENT BUHARI RECEIVES MADAGASCAN COVID-19 HERBAL “DRUG” FROM GUINEA BISSAU’S PRESIDENT EMBALO

PRESIDENT BUHARI RECEIVES MADAGASCAN COVID-19 HERBAL “DRUG” FROM GUINEA BISSAU’S PRESIDENT EMBALO President Muhammadu Buhari Saturday at the State House, Abuja, received the Madagascan native formulation against the Covid-19 pandemic, and reiterated that he will listen to science before allowing traditional or any new medicines to be administered on Nigerians. At an audience meeting with President Umaro Sissoco Embalo of Guinea Bissau who brought along with him the samples of the traditional medicine as shared to African nations by Madagascar, President Buhari said his position on all such herbal or traditional medicinal postulates had remained the same. “We have our institutions, systems and processes in the country. Any such formulations should be sent to them for verification. I will not put it to use without the endorsement of our institutions,” said the Nigerian President. On the main reason for his visit, President Embalo said having stabilized his country after the tus...
Post a Comment
Read more

NSE vows to enhance retail investment opportunities

NSE vows to enhance retail investment opportunities   The Nigerian Stock Exchange has expressed its commitment to redefining and improving investors’ overall experience in the Nigerian capital market, and ensuring that it remains modern, convenient and secure. This was highlighted at the inaugural edition of the Retail Investors’ Webinar hosted by the Exchange in collaboration with the Nigerian International Securities Limited on Monday. The event, with the theme ‘Capital market investing in a digital age’, was supported by the Chartered Institute of Stockbrokers and the Association of Securities Dealing Houses of Nigeria. Speaking during the webinar, the Chief Executive Officer, NSE, Mr Oscar Onyema, said, “Investor participation is central to the growth and sustainable development of any economy. “The Exchange is, therefore, committed to facilitating conversations that will expound on the retail investment opportunities available in the capital market and the chann...
Post a Comment
Read more