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A total of N133.11
billion has been disbursed under the N200 billion Commercial
Agriculture Credit Scheme as at April, 2010 to 139 beneficiaries across
the country. The beneficiaries include 115 individuals/private
promoters and 24 state governments. The federal government in 2009
launched the scheme to intervene in the agriculture sector which
currently contributes over 40 per cent to the country’s gross domestic
product (GDP).

Under the scheme,
which is funded from the proceeds of the N200 billion bond raised by
the Debt Management Office, participating banks can access for onward
lending to their customers while state governments and Abuja could also
borrow for on-lending to farmers in their domain.

The participating
states have accessed N1 billion each for lending to farmers. According
to data posted on the website of the Central Bank of Nigeria, the
states are Adamawa, Anambra, Bauchi, Enugu, Gombe, Kebbi, Kogi, Imo,
Kwara, Nasarawa, Niger, Ondo, Sokoto, Taraba Zamfara, Akwa Ibom,
Rivers, Plateau, Edo, Kano, Benue, Bayelsa, Ogun and the Federal
Capital Territory – Abuja.

The funds are
disbursed through participating banks. The 13 banks participating in
the scheme are Access Bank, Fidelity Bank, First Bank, Guaranty Trust
Bank, Oceanic Bank, Skye, Stanbic IBTC, Union Bank, UBA, Unity Bank and
Zenith Bank. UBA has made the highest disbursement of N37.46 billion to
36 projects followed by Union Bank with N16.15 billion to 18 projects.
Zenith bank disbursed N13.84 billion to 10 projects while First Bank
disbursed N11.92 to 29 projects.

The Central Bank
stated that for failure to abide by guidelines, the regulator withdrew
fund from five banks with respect to 22 projects. The banks are UBA
N12.053 billion, Guarantee Trust Bank N581 million, Skye Bank N2
billion, First Bank N1.6 billion and Union Bank N2.166 billion.

Fast track development

The scheme was
meant to provide cheap funds to fast track development of the
agricultural sector, enhance national food security by increasing food
supply, reduce the cost of credit in agricultural production and
generate employment in the sector.

According to the
Central Bank, the key agricultural commodities to be covered under the
scheme are cultivation of target crops (rice, cassava, cotton, oil
palm, wheat, rubber, sugar cane, fruits and vegetable), Livestock
(dairy, poultry, and piggery), and fisheries.

Agriculture potential

The Managing
director of the World Bank, Ngozi Okonjo-Iweala stated recently that
African countries need to improve on agriculture potentials in order to
boost its growth trajectory and reduce poverty. “I think African
countries really have to sustain their efforts to use agriculture funds
to ensure food security,” she said.

According to her,
Nigeria needs “to think of agriculture in a modern way,” since,
according to her, it is a sector that can provide so much employment.