Agric scheme’s interest drawback gulps N105m
Development interventions by the Central Bank of Nigeria (CBN) in the power and aviation sectors have reached N277.4 billion cumulatively between September 2016 till June 2017, with repayments by the operators trailing progressively.
The programme, under CBN’s Power and Airline Intervention Fund (PAIF) has supported 59 projects in both sectors in efforts to keep them afloat amid harsh economic situation and threats to jobs.
Correspondingly, about N106.13 billion has so far been repaid cumulatively, with consistent and slight increments in the volume of repayments per quarter since September 2016 to June 2017.
A further analysis of the figures from CBN data on the level of repayments in both sectors shows responsiveness on the part of the borrowers, as well as relative return of stability in activities, which continue to boost their revenues in meeting the obligations.
Specifically, of the 16 projects supported under the scheme in aviation sector, worth N120.76 billion, representing 43.5 per cent of the total interventions in both sectors, N55.8 billion has been repaid, while 43 power projects, worth N156.64 billion representing 56.5 per cent of the total intervention, has been repaid as well.
Similarly, the apex bank’s Agricultural Credit Guarantee Scheme (ACGS) has refunded farmers about N105.4 million from January to June 2017, under its Interest Drawback Programme (IDP).
IDP is an innovation under ACGS, instituted to encourage loan repayment by providing a post payment rebate to loan beneficiaries that honour their loan repayment schedules, coupled with the fact that it also presents a reduced effective lending rate for loans under the scheme.
CBN has expended about N1.1 billion from 2014 to June 2017, under the IDP, as a way to encourage borrowings by farmers and repayment of the loans in efforts to support agriculture and related value chains.
In 2014, N323.1 million was repaid to farmers in 29,011 claims; 2015, N394.8 million, made up of 31,142 claims; 2016, N265.9 million, in 25,035 claims; and so far in 2017, N105.4 million in 13,102 claims.
In May 2017 alone, a total of N424.6 million was guaranteed to 4,029 farmers under the ACGS, representing a decline of 9.6 per cent and 24.4 per cent below the levels in April 2017, and the corresponding period of 2016, respectively, CBN’s Economic Report noted.
Sub-sectoral analysis showed that the food crops received the largest share of N226.1 million (53.3 per cent) guaranteed to 2,699 beneficiaries, livestock got N62.2 million (14.7 per cent) guaranteed to 282 beneficiaries, while cash crops sub-sector received N44.4 million (10.5 per cent) guaranteed to 221 beneficiaries.
The mixed crops received N42.2 million (9.9 per cent) guaranteed to 597 beneficiaries while N38.3 million (9.0 per cent) was guaranteed to 137 beneficiaries, in the fisheries subsector, ‘others’ had N11.2 million (2.6 per cent) guaranteed to 93 beneficiaries.