The Central Bank of Nigeria (CBN) has authorized commercial banks to give up to N2 billion maximum as loans to youths interested in going into agriculture, under the Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS).
What you should know
Nairametrics had earlier reported the launching of the Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS) aimed at complementing the Accelerated Agriculture Development Scheme (AADS), and earmarked to mobilize about 370,000 youths in agricultural production.
Some of the key highlights of the scheme include:
- The P-AADS is designed to complement ADDS by exploring private sector partnership to facilitate more rapid land clearing for production of key agricultural commodities.
- P-AADS shall be funded from the Anchor Borrowers’ Programme (ABP).
- The maximum loan accessible under the Scheme shall be N2 billion per obligor. The facility shall be repaid from the Economics of Production (EOP), for cultivating on the cleared farmland.
- 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).
What this means
This recent gesture from the Federal Government of Nigeria, just like other related programmes (e.g. the National Young Farmers Scheme, Anchors Borrowers Programme, etc.), are all aimed at diversifying the economy, reducing food import, and ensuring self-sufficiency in the production of key agricultural output, food security, and creating jobs for our teeming youths; hence, reducing youth restiveness through the process.
What they are saying
@cenbank has authorized commercial banks to give up to N2 billion maximum loan to youths interested in going into agriculture, under the Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS).”
