FG Agriculture Loans For Nigerian Farmers in 2022

FG Agriculture Loans For Nigerian Farmers in 2022

There are numerous Agriculture loans Nigerian government provides to help farmers in the country. In this article we will be walking you through this loans and process on how to apply.

These loans has been set-up by the Buhari led Government to help farmers grow their Agricultural business after the negative impact of the COVID-19 Pandemic in 2020.

These loan programmes are focused on Youths and general MSMEs in which the Federal Government have initiated and thousands of beneficiaries have already benefited. For the Purpose of this article, we will be looking at the ones made available for farmers.

FG Agriculture Loans For Nigerian Farmers in 2022

Below are the list of Federal  Government loans for farmers in Nigeria:

1. Bank of Agriculture Loans

Popularly related to as the “growers bank”, the Bank of Agriculture is a government-approved bank whose end is to give banking services, fiscal loans, and advice to growers in Nigeria. The bank is supervised by the Federal Ministry of Agriculture and regulated by the Central Bank of Nigeria. Some loans handed by the Bank of Agriculture include; SME loans, Cooperative and planter’s loans, Agriculturalmicro-loans, Non-agricultural micro-loans, and Agribusiness loans.

Key Manadates

• Provision of agricultural credit to support all agricultural value chain activities.
• Provision of non-agricultural micro credit
• Savings mobilization
• Capacity development through promotion of co-operatives, agricultural information systems, and the provision of technical support and extension services.
• Provision of opportunities for self-employment in the rural areas, thereby reducing rural-urban migration.
• Inculcation of banking habits at the grass-roots of the Nigerian society.

In order to apply, kindly visit their official website at https://www.boanig.com/

2. Agric- Business Small and Medium Enterprises Investment Scheme AGSMEIS

This is a backing scheme established by the Federal Government in collaboration with the CBN to promote sustainable frugality and increase employment openings through agri- businesses.

The Nirsal Microfinance Bank is in charge of giving out this loan to farmers. Their agrarian loans have an interest rate of 5 with a tenor of 7 times. Diligence eligible for this scheme is the Agriculture sector, Service sector (ICT and the creative industry), Real assiduity (mining and manufacturing), and other SMEs approved by the Central Bank of Nigeria.

To apply for this loan, kindly click here https://flippstack.com/2021/11/how-to-easily-access-cbn-agsmeis-sme-loan.html

3. Commercial Agriculture Credit Scheme (CACS)

The Commercial Agriculture Credit Scheme (CACS) is a loan scheme established by a dual collaboration of the Central Bank of Nigeria (CBN), and the Federal Ministry of Agriculture to support and fast track the improvements/development of the agricultural sector of the country.

This means that anyone who owns a business in the agricultural sector can easily become a beneficiary of the Commercial Agriculture Credit Scheme (CACS) loan, where two hundred billion naira (N200,000,000,000) funds will be disbursed among successful applicants. Also check How to apply for CBN CIFI loan through GTBank.

Features of CACS loan

• The maximum limit for medium and large scale private businesses is two billion naira (N2,000,000,000) while State Governments has no limit.
•  Any private sector entity that wishes to participate must have at least a fifty million naira (N50,000,000) worth of farm asset. This should not in anyway have the cost of farm land attached to the base worth.
• In the case of State Government Irrevocable Standing Payment Order is required.

To apply for this loan kindly click here https://flippstack.com/2021/04/apply-for-cbn-cacs-loan-through-first-bank-of-nigeria-how-to-apply.html

You may also want to read Entrepreneurship Grants In Nigeria

4. Agricultural Credit Support Scheme (ACSS)

The ACSS is an initiative of the Federal Government and the Central Bank of Nigeria with the active support and participation of the Bankers Committee with the Scheme having a prescribed fund of N50.0billion.

ACSS was introduced to enable farmers to exploit the untapped potentials of Nigeria’s agricultural sector, reduce inflation, lower the cost of agricultural production (i. e. food items), generate surplus for export, increase Nigeria’s foreign earnings as well as diversify its revenue base. At the national level, the scheme operates through a Central Implementation Committee (CIC) while at the Federal Capital Territory (FCT) and State levels, the Scheme operates through State Implementation Committees (SICs) instituted to ensure that the objectives of the scheme are realized without hindrance.

To apply for this loan kindly click here https://flippstack.com/2021/11/how-to-easily-access-cbn-agricultural-credit-support-scheme-acss-loan.html

5. Agricultural Credit Guarantee Scheme Fund (ACGSF)

This action, established by the Federal Ministry of Agriculture and managed by the Central Bank provides a guarantee ( about 75) for loans extended to growers from marketable banks.

The ACGSF offers some products which include Interest, Debit, the Tone- Help Group Relation Banking, and the Trust Fund Model. Interest Debit grants interest rates. Tone- Help Group Relation Banking encourages group complements growers, and the Trust Fund Model complements growers’ security for loans.