The Central Bank of Nigeria has called on Deposit Money Banks in Kano State to actively engage in the Agricultural Credit Guarantee Scheme Fund to accelerate the growth of the agricultural sector in the country.
Speaking at the Kano Bankers’ Forum 2023 Dinner and Award Night held at the Meena Event Centre, Kano, the CBN Kano Branch Controller, Alhaji Umar Ibrahim Biu, emphasized the importance of broader participation, highlighting that currently only microfinance banks are involved in the scheme.
Biu emphasized that increased participation from financial institutions in the state would lead to significant agricultural development, bolster food security, and create economic opportunities for the people of Kano State.
He highlighted that in 2023, only 575 applications were guaranteed under the scheme, amounting to N94,289,000. The ACGSF aims to provide loan guarantees for agricultural purposes, covering up to 75 per cent of defaulted amounts net of any security realized.
The scheme aims to boost national food security by increasing food supply and reducing agricultural produce and product prices, while also lowering credit costs for farmers to tap into the sector’s potential.
Biu urged potential loan applicants to contact their participating financial institutions to obtain application forms free of charge.
Addressing security concerns, Biu noted the repairing of two police patrol vans and an armored personnel carrier by the Bankers Committee at a cost of N4.6 million to enhance security within the banking industry.
He commended the support and cooperation of the Kano State Government and other stakeholders towards achieving the objectives of the banking industry.
In his remarks, the Commissioner of Finance, representing Governor Abba Kabir Yusuf, reaffirmed the state government’s commitment to collaborating with CBN and other commercial banks to propel the state’s development.
The event also featured prize presentations, a health talk by the Head of the CBN Kano Clinic, and a performance by the Koroso Cultural Troupe.
