The Apex Bank in Nigeria known as the Central Bank of Nigeria (CBN) has launched a programme to provide more sustainability to the economic growth in the country through food production by granting up to N2 billion loans to farmers across the federation, apply now.
P-AADS is another federal Government of Nigeria farmers loan amongst other agricultural loan to help farmers expand or start up farmers to increase food production and provide food security in Nigeria.
Framers that want to increase their production of food should apply for this Loan, through the application link that will be shown below.
About the CBN P-AADS Loan Scheme
The Central Bank Nigeria (CBN) has launched guidelines for the regulation of the Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS), in order to boost private sector staple food production, industrial raw materials and support food security, job creation and economic diversification.
The bid to address food security and youth unemployment challenges across the country, the CBN introduced the Accelerated Agriculture Development Scheme (AADS) to engage 370,000 youth in agricultural production, in collaboration with state governments.
Criteria for the P-AADAS Farmers Loan
Prospective P-AADS participants must:
- Be existing or new firms engaged in agricultural production with proven capacity and bankable proposal
- Possess acceptable title for contiguous lands of not less than 20 hectares.
- have good credit record be able to provide the required collateral for participation
- 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.
Objectives of P-AADS
- Fast track land clearing for primary production of agricultural commodities;
- Promote food security through the provision of large contiguous land for agricultural production across all states;
- Collaborate with agro-processors engaged in backward integration by providing financing for extended land clearing in proximal locations for cultivating commodities for supply of industrial raw materials;
- Support other capable stakeholders interested in unlocking land for agriculture through appropriate financing; and
- Engender job creation for individual farmers that will cultivate on the cleared land.
Interest rate under the intervention shall be 5.0% p.a. (all inclusive) up to 28th February 2021. Interest on the facility from 1st March 2021 shall be 9% p.a. (all inclusive).
Eligibility of Participants
- Agro-processors of agricultural commodities engaged in backward integration;
- Prime anchors and commodity associations participating under the Anchor Borrowers’ Programme (ABP) with evidence of contiguous land readily available for clearing and cultivation of agricultural commodities; and
- Other companies and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities
Focal Commodities for the 2020 CBN P-AADS Loan
Agricultural commodities eligible for consideration under the Scheme are:
- Oil Palm
Any other commodities as may be listed by the CBN from time to time.
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.
Collateral Requirement: The collateral to be pledged by participants under the Scheme shall be title 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.
Application for the 2020 CBN P-AADS Farmers Loan
The application portal for the CBN P-AADS loan is not yet out we will update this post immediately the application portal is been announced by the CBN, moreover you can read more about this publication on the CBN website via www.cbn.gov.ng/p-aads
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