Appraising CBN’s ‘100 Projects for Every 100 Days’ to boost agro-activities
A new scheme, “100 Projects for Every 100 Days”, put in place by the Central Bank of Nigeria (CBN) to stimulate agro-industrial activities has received the support of stakeholders in the agro sector. The CBN released guidelines for its “Production and Productivity” initiative early in December, through the “100 Projects for Every 100 Days” initiative. […]
A new scheme, “100 Projects for Every 100 Days”, put in place by the Central Bank of Nigeria (CBN) to stimulate agro-industrial activities has received the support of stakeholders in the agro sector.
The CBN released guidelines for its “Production and Productivity” initiative early in December, through the “100 Projects for Every 100 Days” initiative.
Under the initiative, a maximum loan of N5bn would be loaned per obligor, but any amount above the threshold would require special approval of its management.
The CBN, has through the Anchor Borrower Programme (ABP), provided interventions in land preparation, quality seed supply, agro-chemicals and off-take of rice paddy, maize, cassava, soya beans, and lately wheat and sweet potato, among other crops.
In November, 2015, President Muhammadu Buhari launched the ABP to boost agricultural production and minimise importation of food. Farmers captured under this programme include those cultivating cereals.
The programme is intended to create a linkage between companies involved in food processing and smallholder farmers of the required key agricultural commodities through commodity associations.
It is estimated that the ABP scheme has disbursed N864bn to 4.1 million smallholder farmers growing 5.02 million hectares.
Experts are of the view that this new initiative by the apex bank would boost agro industrial activities.
The Chairman of the Rice Farmers Association of Nigeria (RIFAN) and Chairman of Wheat Farmers Association in Kebbi State, Sahabi Augie, said the CBN’s scheme, coupled with denial of forex to food importers, was the wisest decision taken to boost domestic food production, and at the same time create market for home-grown food items.
An agric expert, John Shagy, commended the apex bank for the various interventions and urged it to include more crops such as orange-fleshed sweet potato, plantain and groundnut to guarantee food security.
Mallam Musa Gobir, a small-scale farmer, advised the apex bank to take more measures that would ensure that many of the interventions reached ordinary farmers.
He said, “No matter what the CBN tries to do, you will see some people who will want to take advantage of the situation and jeopardise the schemes. The bank must, therefore, continue to monitor these guys for its interventions to be meaningful.’’
The CBN Governor, Godwin Emefiele, explained after the recent Monetary Policy Committee that while harvesting for the 2020 dry season under the programme was rounding off harvesting activities had commenced for the 2021 wet season cultivation.
He said the CBN had supported 657 large-scale agricultural projects to the tune of N708.39bn, adding that CBN had supported MSMEs across the country by disbursing N134.57bn to 38,140 beneficiaries under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS).