Regulatory Alerts2011-11-10 | CACS 09-2011REPORT ON THE ACTIVITIES OF THE N200 BILLION COMMERCIAL AGRICULTURAL SCHEMES (CACS) FOR THE MONTH OF SEPTEMBER, 2011
The report from the Central Bank of Nigeria (CBN) Development Finance Department provides an overview of the Commercial Agriculture Credit Scheme's (CACS) performance from inception to September 2011. As of this date, N54.97 billion had been disbursed for 180 projects across various geopolitical zones. The largest number of projects and funds were disbursed in the South-West (69 projects valued at N58.08 billion) and North-West regions (26 projects valued at N17.302 billion). Key highlights include: 1. A total of 180 projects had been financed as at September 2011. 2. The majority of the funds (N54.97 billion) were disbursed for these projects, with N63.253 billion remaining in the scheme's coffers. 3. Bank disbursements were led by Zenith Bank, Guaranty Trust Bank, and Access Bank. 4. The agro-allied sector received the highest funding (N20.81 billion), followed by the livestock and poultry sectors. 5. Loan defaults accounted for 2.9% of total disbursements, with no defaults in projects funded through Islamic financing principles. 6. The processing category received the most funding within the value chain distribution (N60.32 billion).
THE ACTIVITIES OF THE N200 BILLION COMMERCIAL AGRICULTURE CREDIT SCHEME (CACS) FOR SEPTEMBER, 2011 We present herewith, report on the position of the Commercial Agriculture Credit Scheme (CACS) for the Period January to September 2011:
1.0 State Government'S Patronage - Applications Received/ Processed
In September 2011, no State Government access CACS fund. The number of State Governments participating in the Scheme therefore remains twenty six (26) for the period January - September 2011. These State Governments accessed funds for on-lending to farmers' unions, co-operatives and financing of other areas of agricultural interventions in their various States. Analysis of the position of State Governments participation as at September, 2011 since inception in 2009 is shown below in figure 1 and table 1: Figure 1: Number of State Governments Financed under CACS by Regions
4 (15.38%) 7 (26.92%) 3 (11.54%) 4 (15.38%) 3 (11.54%) 5 (19.23%) Table 1: Disbursements Under CACS to State Governments
| Amount | |||
|---|---|---|---|
| Financing Bank | States Financed | (N'Bn) | |
| 1 | Anambra, Enugu, Sokoto, Plateau, Cross | ||
| Fidelity Bank Plc | River | N5.0 | |
| 2 | Union Bank of Nigeria Plc | Gombe, Kwara and Niger, Bayelsa, FCT* | N4.5 |
| 3 | United Bank for Africa | Bauchi, Kogi, Nasarawa, Ondo, Zamfara, | |
| Plc | Akwa Ibom, FCT*, Edo, Ogun and Kano | N9.5 | |
| 4 | Zenith Bank Plc | Adamawa, Kebbi, Rivers and Taraba | N4.0 |
| 5 | Access Bank Plc | Imo | N1.0 |
| 6 | Guaranty Trust Bank Plc | Benue | N1.0 |
| 7 | First Bank of Nigeria Plc | Osun | N1.0 |
| Total: 6 Banks | 26 State Governments | N26.0 |
Note: (*) - FCT accessed N0.50 billion each from UBA and UBN Plc respectively.
2.0 Actual Releases Of Funds By The Cbn To Banks
During the period under review (September 2011), the sum of N2.263 billion was released to 4 banks with respect to 11 CACS projects bringing total releases by the CBN since inception in 2009 to N136.746 billion.
| Amount Released | |||
|---|---|---|---|
| Name of Bank | Number of Projects | (N'billion) | |
| 1 | Unity | 1 | 1.5 |
| 2 | Stanbic IBTC | 2 | 0.08 |
| 3 | Wema | 1 | 0.115 |
| 4 | First Bank | 7 | 0.568 |
| 11 | 2.263 |
Table 2: Performance of Deposit Money Banks (DMBs) under the Commercial Agriculture Credit Scheme (CACS) September 2011 From inception to date sixteen (16) banks, namely; Access Bank Plc, Fidelity Bank, First Bank of Nigeria, Guaranty Trust Bank, Oceanic Bank Plc, Skye Bank, Stanbic IBTC, Union Bank of Nigeria, United Bank for Africa, Unity Bank Plc, Zenith Bank Page 2 Plc, Diamond Bank Plc, Sterling, Citibank, Mainstream Bank and Wema participated under the Scheme. Since inception, the breakdown of funds released by the CBN to all the deposit money banks (DMBs) that have participated under the Scheme is detailed in Table 3 below:
| Amount released | |||
|---|---|---|---|
| Financing Bank | Projects | to Banks (N'Bn) | |
| 1 | Access Bank Nigeria Plc | 9 | 7.926 |
| 2 | Fidelity Bank Plc | 7 | 6.225 |
| 3 | First Bank of Nigeria | 46 | 14.766 |
| 4 | Guaranty Trust Bank Plc | 8 | 5.55 |
| 5 | Oceanic Bank International Plc | 1 | 2.0 |
| 6 | Skye Bank Plc | 6 | 8.667 |
| 7 | Stanbic IBTC | 19 | 8.341 |
| 8 | Union Bank Plc | 18 | 15.343 |
| 9 | United Bank for Africa Plc | 35 | 37.912 |
| 10 | Unity Bank Plc | 6 | 8.19 |
| 11 | Zenith Bank Plc | 10 | 15.335 |
| 12 | Citibank | 1 | 1.5 |
| 13 | Diamond Bank | 3 | 0.65 |
| 14 | Sterling Bank | 2 | 2.22 |
| 15 | Mainstreet Bank(AfriBank) | 1 | 2.0 |
| 16 | Wema Bank Plc | 1 | 0.115 |
| Total | 173 | 136.746 |
Table 3: Disbursements Under CACS by Deposit Money Banks (DMBs)2009 to date The CBN has released the sum of N136.746 billion for disbursement to 173 beneficiaries made up of 146 individuals/private promoters and 26 State Governments that accessed N1.0 billion each. The figure has dropped from the level recorded in August 2011 because the sum of 2.65 billion was withdrawn from 3 banks.
Figure 2: Lending by Deposit Money Banks (DMBs) under the Commercial Agriculture Credit Scheme (CACS) by Number of Projects - As at September, 2011
50 45 40 35 30 25 20 15 10 5 O Figure 3: Banks' Lending under the Commercial Agriculture Credit Scheme (CACS) in N' Billions As at September, 2011
Sterling , 2.22 Access , 7.926 Mainstreet , 2 Diamond , 0.65 Wema, 0,11 First Bank , Fidelity, 6.225 Citibank, 1.5 _14.766 Zenith , 15.335.
GTB, 5.55 Unity , 8.19 ceanic , 2 Skye , 8.667 UBA, 37.912 Stanbic , 8.341 3.0 BANK'S PERFORMANCE UNDER CACS SINCE INCEPTION CBN's REPORT ON THE COMMERCIAL AGRICULTURE CREDIT SCHEME (CACS) INTO THE SEPTEMBER, 2011 MEETING OF THE NATIONAL ECONOMIC COUNCIL (NEC) Page 4 Presented on table 3 below, is the summary of the activities of banks in Nigeria under the Scheme since inception:
| Application | Approved | ||||||
|---|---|---|---|---|---|---|---|
| Received | Projects | Disbursement | |||||
| Financing Bank | Priv | Private | States | ||||
| ate | States | Private | States | (N'Bn) | (N'Bn) | ||
| 1 | United Bank For Africa Plc | 98 | 18 | 25 | 10 | 28.412 | 9.5 |
| 2 | First Bank of Nigeria Plc | 214 | 4 | 45 | 1 | 13.767 | 1 |
| 3 | Skye Bank Plc | 7 | 0 | 6 | 0 | 8.667 | 0 |
| 4 | Ecobank Nigeria Plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 5 | Equitorial Trust Bank Plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 6 | Fidelity Bank Plc | 2 | 5 | 2 | 5 | 1.225 | 5 |
| 7 | First City Monument Bank Plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 8 | First Inland Bank Plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 9 | Guaranty Trust Bank Plc | 7 | 0 | 7 | 1 | 4.55 | 1 |
| 10 | Intercontinental Bank plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 11 | Citi Bank (NIB Plc) | 1 | 0 | 1 | 0 | 1.5 | 0 |
| Oceanic Bank International Nigeria Plc | 1 | 0 | 1 | 0 | 2 | 0 | |
| 12 13 | Platinum Habib Bank Plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 15 | Spring Bank Plc | 0 | 0 | 0 | 0 | 0 | 0 |
| 16 | Stanbic - IBTC Bank Plc | 19 | 0 | 19 | 0 | 8.341 | 0 |
| Standard Chartered Bank Nigeria Plc | 0 | 0 | 0 | 0 | 0 | 0 | |
| 17 18 | Sterling Bank Plc | 2 | 0 | 2 | 0 | 2.221 | 0 |
| 19 | Union Bank Plc | 15 | 4 | 14 | 5 | 10.843 | 4.5 |
| 20 | Access Bank Nigeria Plc | 8 | 1 | 8 | 1 | 6.926 | 1 |
| 21 | Unity Bank Plc | 7 | 0 | 6 | 0 | 8.195 | 0 |
| 22 | Wema Bank Plc | 1 | 0 | 1 | 0 | 0.115 | 0 |
| 23 | Zenith Bank Plc | 8 | 4 | 6 | 4 | 11.335 | 4 |
| 24 | Main stream | 1 | 0 | 1 | 0 | 2 | 0 |
| Total | 394 | 36 | 147 | 27* | 110.75 | 26 |
Table 4: Performance of Deposit Money Banks (DMBs) in Nigeria under the Commercial Agriculture Credit Scheme (CACS) Since Inception in 2009 Note: (*) - FCT accessed N0.50 billion each from UBA and UBN Plc respectively.
4.0 Withdrawal Of Funds
Page 5 The sum of N2.65 billion was withdrawn from three (3) banks during the month under review. This amounts to N24.084 billion for twenty-six (26) projects withdrawn from eight (8) deposit money banks as at September, 2011 due to contravention of the Scheme's Guidelines. The details of the withdrawals are given below:
| | UBA Plc | Seventeen (17) projects | N12.053 billion |
|---|
Cacs Performance By Value Chain Distribution
The analysis of projects financed under CACS by value chain showed that out of the 147 CACS private sector sponsored projects, production accounted for 44% and dominated the activities funded while processing accounted for 42.18%.
These activities were distantly followed by marketing, storage and input supplies which registered 7.0%, 6.12% and 0.68% respectively. With regards to value of funds released, processing accounted for 54.48% followed by production which accounted for 31.86% of the value of enterprises financed. These activities were distantly followed by marketing, storage and input supplies which registered 8.43%, 3.88% and 1.35% respectively (table 5, figure 4).
| Category | Number (%) of Projects | Value {N'billions and %} |
|---|---|---|
| Production | 64 (44%) | 35.29 {31.86%} |
| Processing | 62 (42.18%) | 60.32 {54.48%} |
| Marketing | 11 (7.0%) | 9.34 {8.43%} |
| Storage | 9 (6.12%) | 4.29 {3.88%} |
| Input Supplies | 1 (0.68%) | 1.5 {1.35%} |
Table 5: Analysis of CACS Financed Private Projects by Value Chain Page 6
Total 147 110.75
Figure 4: Banks' Disbursements by Number of Projects under the Commercial Agriculture Credit Scheme (CACS) As at September, 2011 based on Value Chain Distribution
5.0 Cacs Performance By Geopolitical Zones Distribution
The analysis of the performance of CACS projects by regions (table 6) showed that in the South-West Region which registered 69 projects valued N58.08 billion ranked the highest. The North-West region was next with 26 projects valued N17.302 billion while the North Central Region was third in the order with 21 project valued N11.285 billion. The South East Region had 15 projects valued N4.551billion while the South-South and North East regions had 4 and 12 projects valued N5.695 and N13.831 billion respectively.
Page 7
Table 6: Analysis of CACS Financed Private Projects by Geo-political Zones
| % Number of | ||||
|---|---|---|---|---|
| Region | Number of Projects | Amount Disbursed | % Amount Disbursed | Projects |
| Northwest | 26 | 17.302 | 15.62 | 17.69 |
| Southwest | 69 | 58.08 | 52.44 | 46.94 |
| Southeast | 15 | 4.551 | 4.12 | 10.20 |
| North Central | 21 | 11.285 | 10.19 | 14.29 |
| Northeast | 4 | 5.695 | 5.14 | 2.72 |
| Southsouth | 12 | 13.831 | 12.49 | 8.16 |
| 147 | 110.74 | 100 | 100 |
Figure 5: Number of Private Projects Financed under CACS by Regions 69 (46.94%) 26 (17.69%) 21 (14.29%) 4 (2.72%) 15 (10.20%) 12 (8.16%) 7.0 POSITION OF THE BALANCE OF CACS FUNDS The balance of CACS funds as at September 2011 is N63.253 billion DEVELOPMENT FINANCE DEPARTMENT CENTRAL BANK OF NIGERIA ABUJA September 30, 2011