Guideline for the New CBN Private Sector-Led Accelerated Agriculture Development Scheme Loan

Guideline for the New CBN Private Sector-Led Accelerated Agriculture Development Scheme Loan

The new Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS) was also developed to complement AADS by exploring private sector partnership to facilitate more rapid land clearing for production of key agricultural commodities.

The broad objective of the P-AADS scheme is to facilitate increased private sector agricultural production of staple foods and industrial raw materials, as well as support food security, job creation and economic diversification.

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For enquiries and details, call World Farmers Centre Admin on 08035219966 or WhatsApp us @+2348173030321.

The specific objectives are to:

Fast track land clearing for primary production of agricultural commodities;

Promote food security through the provision of large contiguous land for agricultural production across all states;

Collaborate with agro-processors engaged in backward integration by providing financing for extended land clearing in proximal locations for cultivating commodities for supply of industrial raw materials;

Support other capable stakeholders interested in unlocking land for agriculture through appropriate financing; and

Engender job creation for individual farmers that will cultivate on the cleared land.

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For enquiries and details, call World Farmers Centre Admin on 08035219966 or WhatsApp us @+2348173030321.

READ ALSO: Maize Farmers, Processors kick Against Maize Importation

Eligible Participants

Agro-processors of agricultural commodities engaged in backward integration;

Prime anchors and commodity associations participating under the Anchor Borrowers’ Programme (ABP) with evidence of contiguous land readily available for clearing and cultivation of agricultural commodities;

Other companies and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities.

Focal Commodities

Agricultural commodities eligible for consideration under the Scheme are:

Rice

Maize

Cassava

Cotton

Wheat

Tomato

Poultry

Fish

Sorghum

Oil Palm

Cocoa

Livestock/Dairy

Any other commodities as may be listed by the CBN from time to time.

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Eligibility Criteria

Prospective 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 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

Funding

The Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS) shall be

funded from the Anchor Borrowers’ Programme (ABP).

Loan Limit

The maximum loan accessible under the Scheme shall be N2 billion per obligor. The facility shall be repaid from the Economics of Production (EOP) for cultivating on the cleared farmland.

Interest Rate

Interest rate under the intervention shall be 5.0% p.a. (all inclusive) up to 28th February 2021. Interest on the facility from 1st March 2021 shall be 9% p.a. (all inclusive).

 

Loan Tenor

Annual crops: Maximum tenor of six (6) years with six (6) months moratorium.

Perennial crops: Maximum tenor of ten (10) years with one-year moratorium.

Collateral Requirement

The collateral to be pledged by participants under the Scheme shall be title of the cleared land and other acceptable collateral prescribed under the ABP. CBN shall bear 50% of the credit risk in the event of default by the participant.

Repayment

Repayment of the facility shall be made on instalment basis through the participating banks and spread over the EOP of the cultivated commodities.

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For enquiries and details, call World Farmers Centre Admin on 08035219966 or WhatsApp us @+2348173030321.

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