Nigeria: Banks fined N1.2 billion for non-adherence to agricultural credit scheme guidelines
The Central Bank of Nigeria (CBN) has fined banks N1.2 billion (€5.4 million) for violating the guidelines of the Commercial Agricultural Credit Scheme (CACS).The Central Bank of Nigeria (CBN) has fined banks N1.2 billion (€5.4 million) for violating the guidelines of the Commercial Agricultural Credit Scheme (CACS).
A recent report from the bank states that the major challenges encountered by
the scheme are,
"Non-adherence to CACS guidelines by banks, and
poor monitoring of projects by some participating banks."
The CACS was established to finance large ticket projects along the agricultural value chain, said the CBN, quoted by Vanguard.
governments can access a maximum of N1 billion each for on-lending to farmers' cooperatives or other areas of agricultural intervention.
As part of measures to ensure the availability of credit to the agricultural sector, the Central Bank of Nigeria (CBN) announced at the end of May 2014 that it is extending the terminal date for the CACS by ten years. The scheme, which was meant to be terminated on 30 September 2016, will now end on 30 September 2025.