CBN Agricultural Loan 2024 Application – How to Apply

Are you a Nigerian youth with dreams of thriving in the agricultural sector? Or perhaps you’re an entrepreneur eyeing the vast potential of the agricultural value chain. Look no further than the CBN Agricultural Loan 2024!

In this blog post, we’ll delve into the details of this transformative financial scheme that’s set to empower individuals and businesses in Nigeria’s agricultural landscape.

The CBN Agricultural Loan 2024: A Brief Overview

The roots of the CBN Agricultural Loan 2024 can be traced back to Decree No. 20 of 1977, and it officially commenced operations in April 1978. At its inception, the scheme boasted an original share capital of N100 million and a paid-up capital of N85.6 million, with the Federal Government holding 60% of the shares and the Central Bank of Nigeria, 40%.

Over the years, this financial initiative has evolved to meet the growing demands of Nigeria’s agriculture sector. In March 2001, the capital base of the scheme was augmented to a substantial N3 billion. One of its key functions is to guarantee credit facilities offered to farmers by banks, covering up to 75% of the defaulted amount, net of any realized security.

The Central Bank of Nigeria is entrusted with managing the day-to-day operations of the scheme, with specific guidelines outlining eligible enterprises that can benefit from the guarantees offered.

How the CBN Agricultural Loan 2024 Operates

To facilitate the implementation of the CBN Agricultural Loan 2024, a dedicated account called the ‘CBN Agricultural Loan – Non-Interest Fund’ is established with the apex bank. Non-interest deposit banks, whether full-fledged or window institutions are required to allocate 5% of their Profit After Tax (PAT) annually to contribute to this fund.

These contributions must be transferred to the Central Bank of Nigeria within 10 working days following the Annual General Meeting (AGM) of the participating bank.

Eligible Activities Under the Scheme

The CBN Agricultural Loan 2024 covers a broad spectrum of activities within the agricultural value chain. This encompasses production, input supply, storage, processing, logistics, and marketing. Furthermore, it extends its reach to include micro, small, and medium-sized enterprises (MSMEs) in sectors such as manufacturing, ICT, mining, petrochemicals, the creative industry, and other areas as determined by the CBN from time to time.

Accessing the CBN Agricultural Loan 2024

For those eager to tap into the CBN Agricultural Loan 2024, here’s what you need to know:

1. Components of the Loan

• Debt Component: This comprises 50% of the fund and is disbursed as financing to eligible businesses through Non-Interest Deposit Money Banks.
• Asset Registration: Assets purchased through the loan must be registered with the National Collateral Registry (NCR).
• Financing Limit: Up to N10,000,000.
• Interest Rate (Mark-up): 5% per annum.
• Tenor: Up to 7 years, depending on the project’s nature and gestation period.
• Moratorium: A maximum of 18 months for the principal amount and 6 months for the markup.

2. Requirements for the CBN Agricultural Loan 2024

• Completed application form.
• Bank Verification Number (BVN).
• Certificate of Training from a recognized Entrepreneurship Development Institution (EDI) or proof of membership in an organized private sector association.
• Letter of Introduction from a reputable authority, such as a Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, etc. (for individuals and microenterprises only).
• Evidence of business name registration or certificate of incorporation, along with the filing of annual returns in compliance with the provisions of the Companies and Allied Matters Act (1990).

Target Audience: Nigerian Youth

The CBN Agricultural Loan 2024 is strategically aimed at Nigerian youth aged between 18 and 35 years. Its overarching goal is to foster collaboration between state governments, the Central Bank of Nigeria, and various stakeholders in the agricultural value chain across each state.

In conclusion, the CBN Agricultural Loan 2024 is a beacon of hope for Nigerian youth and entrepreneurs looking to make their mark in agriculture and related sectors. It not only provides financial support but also encourages sustainable growth and development in the vibrant Nigerian agricultural landscape. So, seize this opportunity, harness your potential, and embark on your journey to agricultural success with the CBN Agricultural Loan 2024!

To apply go to https://www.cbn.gov.ng/devfin/acgsf.asp

For more information regarding the CBN Agricultural Loan 2024 kindly send us a message via searchngr24@gmail.com and we will give you a reply in a jiffy.