FMAFS, ACGSF COLLABORATES TO ENHANCE AGRICULTURAL CREDIT ACCESS, AMONG OTHERS
The Federal Ministry of Agriculture and Food Security (FMAFS) has assured of its readiness to Partner with the Agricultural Credit Guarantee Scheme Fund (ACGSF), in order to enhance agricultural credit access, achieve Food Sovereignty, Economic Diversification and boost the income of Nigeria Farmers.
Speaking during a courtesy visit by the delegation of the Agricultural Credit Guarantee Scheme Fund (ACGSF), led by the Board chairman, Dr. Olusegun Oshin at the Ministry’s Room in Abuja, recently, the Minister of Agriculture and Food Security, Sen. Abubakar Kyari stated that the federal government would provide the enabling environment, policy direction, and access to capital as well as credit to assist Nigerian farmers in the agricultural ecosystem.
Kyari said that the robust collaboration and partnership of agricultural financial institutions like ACGSF would ensure success in the Agricultural sector in line with the Renewed Hope Agenda of Mr. President
He noted that the collaboration would ensure that Nigerian farmers have access to credit facilities, achieve food sovereignty, and economic growth.
He emphasized the need for a credible national farmer registry to ensure that only legitimate farmers and agribusiness entrepreneurs would have access to credit facilities and interventions.
In his remarks, the Minister of State for Agriculture and Food Security, Sen. Dr. Aliyu Abdullahi stated that ‘’ to achieve national food security in line with the Renewed Hope Agenda ,there a need to establish a robust foundation for agricultural financing for Nigerian farmers’’
In his welcome remarks, the ACGSF Chairman, Dr. Olusegun Oshin, said the visit was aimed at deepening collaboration with the Ministry on expanding the reach of the Scheme, and increasing farmers’ access to credit.
Dr. Oshin stated that ‘’ ACGSF provide guarantee in respect of loans granted by lending banks for agricultural purposes, with the aim of increasing the level of bank credit to the agricultural sector. Loans under the Scheme include advances, overdrafts and any other credit facility’’.
He revealed that the Board is developing a Trust Fund Model and proposed the establishment of a Joint Technical Working Committee to sustain collaboration with the Ministry.
The Agricultural Credit Guarantee Scheme (ACGS) was established by Decree No. 20 of 1977. The Scheme became operational in April 1978, and is fully subscribed to by the Federal Government (60%) and Central Bank of Nigeria (40%). The share capital under the Scheme is ₦50 Billion (fifty billion naira).The Scheme is under the management of the Agricultural Credit Guarantee Scheme Fund Board, and the Central Bank of Nigeria is the managing agent for the administration of the Scheme.
