The Central Bank of Nigeria (CBN) in a statement on Thursday revealed that it has launched a framework for the integration of non-interest window in all its intervention programmes.
These invention schemes by the apex bank are directed towards providing support for Micro, Small and Medium Enterprises (MSMEs) and households to mitigate the damaging impact of Covid-19 pandemic in the country.
The new framework for the non-interest window is particularly aimed at “the Anchor Borrowers’ Programme (ABP) and the Targeted Credit Facility (TCF) to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.
particularly the Anchor Borrowers’ Programme (ABP) and the Targeted Credit Facility (TCF) to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.
— Central Bank of Nigeria (@cenbank) June 18, 2020
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The Anchor Borrowers’ Programme (ABP) which was established on November 17, 2015 is intended to create a linkage between large companies involved in the processing and small holder farmers (SHFs) of the required key agricultural commodities.
The aim is to increase agricultural output and significantly improving capacity utilization of processors. Other objectives include: increase banks’ financing to the agricultural sector, to reduce agricultural commodity importation and conserve external reserves among others
The targeted commodities under the programme are; Cereals (Rice, Maize, wheat etc., Cotton, Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.), Sugarcane, Tree crops (Oil palm, Cocoa, Rubber etc.), Legumes (Soybean, Sesame seed, Cowpea etc., Tomato, Livestock (Fish, Poultry, Ruminants etc.)
The loan is targeted at smallholder farmers engaged in the production of identified commodities across the country.
CBN on Tuesday 9 June, said it would fund 1.6 million farmers across the country in the 2020 wet season. through its Anchor Borrowers Programme (ABP).
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This was disclosed by the CBN’s Director, Development Finance Department, Yila Yusuf, during the flag-off of Farm Inputs Distribution for cotton farmers for the 2020 planting season in Kwali, Abuja.
CBN in March 2020, introduced the N50 billion Targeted Credit Facility (TCF) as a stimulus package to support households and micro, small and medium enterprises (MSMEs) affected by the COVID-19 pandemic.
According to the statement released by the CBN, the bank “earmarks N432bn to fund the value chains of nine commodities in the 2020 wet season farming. CBN is committed to aggressively fund its agricultural programmes and spur farmers along select crop value chains to prevent the country from sliding into a recession.’
“Over 1.1 million farmers, cultivating over one million hectares of farmland, are expected to benefit from the loans that will help to produce a collective output of 8.3 million metric tons”
Written by;
Ifunanya Ikueze
