CBN unveils bumper to boost food production

Central Bank of Nigeria (CBN) has said participating financial institutions in the newly created Accelerated Agriculture Development Scheme (P-AADS) would bear 50 percent of the credit risk associated with the scheme meant to boost food production in the country.

The private sector initiative for young farmers that came into being yesterday is an offshoot of the earlier Accelerated Agriculture Development Scheme (AADS) launched by the apex bank in June this year to engage 370,000 youths in agriculture.

The P-AADS guidelines articulate process of accessing credit, running into N2 billion at the minimum, per applicant. According to the document, the interest rate, which is a new addition, “shall be five per cent per annum up to 28 February 28, 2021.” The rate from next March would be nine per cent yearly, CBN added.