Agricultural loans in Nigeria are designed to support various farming purposes, including crop cultivation, animal husbandry, aquaculture, and more. These loans can be used to purchase supplies, construct bio-gas plants and irrigation systems, and even acquire agricultural land.
Top Agriculture Loans in Nigeria
1. Agricultural Credit Support Scheme (ACSS)
The ACSS is a joint initiative of the Federal Government and the Central Bank of Nigeria, supported by the Bankers Committee. With a fund of N50.0 billion, the scheme aims to:
- Unlock Nigeria's agricultural potential
- Reduce inflation and production costs
- Generate export surpluses and increase foreign earnings
- Diversify Nigeria's revenue base
The scheme operates through a Central Implementation Committee (CIC) at the national level and State Implementation Committees (SICs) at the state level.
2. Commercial Agriculture Credit Scheme (CACS)
In 2009, the Central Bank of Nigeria (CBN) and the Federal Ministry of Agriculture and Water Resources (FMA&WR) established the CACS to finance the agricultural value chain (production, processing, storage, and marketing). The scheme aims to:
- Increase production
- Moderate inflationary pressures
- Achieve price stability
3. Agricultural Credit Guarantee Scheme Fund (ACGSF)
Established in 1977, the ACGSF provides guarantees for credit facilities extended to farmers by banks, covering up to 75% of the amount in default. The fund is managed by the Central Bank of Nigeria and has a capital base of N3 billion. Shareholders include the Federal Government (60%) and the Central Bank of Nigeria (40%).