Regulatory Alerts2014-05-20 | FPR/DIR/CIR/GEN/001/007Revised Strategy for the Implementation of Commercial Agriculture Scheme (CACS)
The Agriculture Credit Guarantee Scheme (ACGS) is a program in Nigeria that aims to boost the agricultural sector by providing farmers with credit facilities. It's implemented through participating banks and funded through a N200 billion bond issued by the Federal Government, managed by the Debt Management Office (DMO). The Central Bank of Nigeria (CBN) oversees the implementation, sets guidelines for lending rates, credit risk management, and loan repayment. Participating Banks are responsible for due diligence, ensuring funds are used for the intended purpose, bearing 100% credit risk, and submitting monthly returns to the CBN. Farmers (borrowers) must use the funds as specified, adhere to terms and conditions, and repay the loan when due. The CBN collects funds from participating banks when guidelines are not followed. The Agriculture Credit Guarantee Scheme aims to enhance food security, create employment opportunities, improve rural livelihoods, and contribute significantly to Nigeria's GDP.