The CBN Accelerated Agriculture Development Scheme (P-AADS) Fund is a private sector-led scheme meant for funding land clearing, provision of laboratory, irrigation, and storage facilities, as well as other support infrastructure for local commodities
OBJECTIVES
Funding private sector agricultural production of staple foods and industrial raw materials, as well as support food security, job creation and economic diversification
ELIGIBLE PARTICIPANTS
i. Processors of agricultural commodities engaged in backward integration;
ii. Prime anchors and commodity associations participating under the Anchor Borrowers Programme (ABP) with evidence of contiguous and readily available for clearing and cultivation of agricultural commodities; and
iii. Other companies and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities
FOCAL COMMODITIES
Eligible commodities are; Rice, Maize, Cassava, Cotton, Wheat, Tomato, Poultry, Fish, Sorghum, Oil Palm, Cocoa, Livestock/Dairy Any other commodities as may be listed by the CBN from time to time
ELIGIBILITY CRITERIA
i. Must be firms engaged in agricultural production
ii. Possess acceptable time for contiguous lands of not more than 20 hectares
iii. Have good credit record
iv. Be able to provide the required collateral for participation and
v. Provide evidence of capacity to cultivate a focal commodity directly or engagement of farmers, including youths as in growers or out-growers to cultivate on the land after clearing
FUNDING The Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS) shall be funded from the Anchor Borrowers Programme (ABP)
LOAN LIMIT
Maximum loan accessible under the scheme shall be N2 billion per . The facility shall be repaid from the Economics of Production (EOP) for cultivating on the farmland
LOAN TENOR
Annual crops: Maximum tenor of six (6) years with six (6) months moratorium
Perennial crops: Maximum tenor of ten (10) years with one-year moratorium
INTEREST RATE
Interest rates under the intervention shall be 5.0% pa (all inclusive) up to 28th February 2021. Interest on the facility from 1st March 2021 shall be 9% p.a (all inclusive)
COLLATERAL REQUIREMENT
Collateral to be pledged by participants shall be of the cleared land and other acceptable collateral prescribed under the ABP CBN shall bear 50% of the credit risk in the event of default by the participant.
REPAYMENT
Repayment of the facility shall be made on installment basis through the participating banks and spread over the EOP of the cultivated commodities. The participating banks shall remit repayment received to the CBN on quarterly or annual basis depending on the commodity financed.
For the full information and modalities for application, refer to the guidelines on www.cbn.gov.ng/Out/2020/DFD/GUIDELINES FOR THE P-AADS.pdf
