The Central Bank of Nigeria (CBN) has unveiled the guidelines of a new agricultural scheme to engage 370,000 youths in agricultural production.
The scheme allows beneficiaries to borrow up to N2 billion at 5% interest rate up to February 28th 2021, and interest rate of 9% from March 1st 2021.
The scheme also allows loan tenor of six months for Annual crops with six months moratorium. For Perennial crops, the scheme allows loan tenor of up to 10 years with one-year moratorium.
Known as the Accelerated Agriculture Development Scheme (AADS) the aim of the scheme is to engage 370,000 youth in agricultural production, in collaboration with state governments with a view to address the food security and youth unemployment challenges across the country.
According to the CBN, “The 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.”
According to the guidelines, intending beneficiaries must be any of the three categories: 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; and Other companies and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities.
The scheme focuses on 12 agricultural commodities namely Rice, Maize, Cassava, Cotton, Wheat, Tomato, Poultry, Fish, Sorghum, Oil Palm, Cocoa, Livestock/Dairy.
Read Also: How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt
