The Central Bank of Nigeria has urged Deposit Money Banks in Kano State to participate fully in the Agricultural Credit Guarantee Scheme Fund to fast-track the development of the agricultural sector of the nation’s economy.
CBN Kano Branch Controller, Alhaji Umar Ibrahim Biu, made the call at the Kano Bankers’ Forum 2023 Dinner and Award Night held at the Meena Event Centre in Kano
He said the call was necessary because only microfinance banks are currently taking part in the scheme.
He noted that successful participation in the ACGSF by financial institutions in the state would lead to greater agricultural development, food security and economic opportunities for the people of Kano State.
While pointing that in the year 2023, only 575 applications were guaranteed, with a value of N94,289,000, Biu said the ACGSF was established to provide guarantee of loans granted by banks for agricultural purposes.
He further explained that the Fund guarantees credit facilities extended to farmers by banks up to 75 per cent of the amount in default net of any security realised.
According to him, the ACGSF was also established to enhance national food security by increasing food supply and affecting lower agricultural produce and product prices.
He added that the scheme also reduces the cost of credit in agricultural production to allow farmers to exploit the untapped potential of the sector.
The CBN controller therefore, urged interested ACGS loan applicants to contact their participating financial institutions to obtain application forms free of charge.
On security, the branch controller said following growing concern within the banking industry with financial institutions becoming the prime target of criminal actors, the Bankers Committee has repaired two Police patrol vans and an Armoured Personnel Carrier at a cost of N4.6 million
He revealed that the vehicles are currently in good working condition and the APC has been stationed at the CBN Kano to respond to threats that may be posed to any bank.
He commended the Kano State Government and other stakeholders for their support and cooperation towards the achievement of the banker’s objectives.
In his remarks, the Commissioner of Finance, who represented Governor Abba Kabir Yusuf, pledged the commitment of the state government to continue to partner with CBN and other commercial banks to move the state forward.