Intervention funds: CBN warns banks to not charge interest above 9%.
The Central Bank of Nigeria on Wednesday warned Deposit Money Banks participating in the disbursement of its intervention funds to different critical sectors against charging above the approved nine per cent interest rate.
The governor assured the young farmers of the CBN’s funding support through their respective banks, and urged them to report any lender that charged them above nine per cent interest on loans guaranteed by the apex bank.
Nigeria Plans $3.2 Billion Capitalization for Farming Lender
Nigeria plans to capitalize its state-owned Bank of Agriculture with 1 trillion naira ($3.2 billion) and will allow the lender to take deposits as Africa’s most-populous nation seeks to boost farming output and reduce food imports.
“We are looking at 25 million farmers” as stakeholders or depositors, Agriculture and Rural Development Minister Audu Ogbeh said in an interview Monday in the capital, Abuja. “We are probably going to take a major step by the end of this year, and by February, March, have a structure in place for the changes we want to carry out.”
NIRSAL, Moroccan Financial Institution Seal Pact on Agriculture Development
The Nigeria Incentive Based Risk-Sharing for Agricultural Lending (NIRSAL) in line with its mandate to de-risk and facilitate private finance into the agric sector has signed a Memorandum of Understanding (MOU) with Group Crédit Agricole (GCAM) – a top-ranking Moroccan financial institution to boost agricultural development in Nigeria.
The Managing Director of NIRSAL, Mr. Aliyu Abdulhameed signed on behalf of NIRSAL while the Chairman of GCAM, Mr. Tariq Sijilmassi signed on behalf of his institution.
The signing ceremony was witnessed by the President, Muhammadu Buhari, King Mohammed VI of Morocco and some top ranking Nigerian dignitaries- the Minister of Federal Capital Territory (FCT), Mallam Muhammed Musa Bello, the Jigawa State Governor, Alhaji Badaru Abubakar and the National Security Adviser Mohammed Babagana Monguno.
N140bn SMEs fund yet to be accessed - CBN
Only N80 billion out of the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) established by the Central Bank of Nigeria (CBN) has been accessed, the bank has said.
This leaves an outstanding N140 billion yet to be accesses by small businesses across the country.
The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, stated this in Abeokuta, Ogun State, during an inspection tour of some agricultural projects in the state by the Presidential Task Force, the apex bank said in a statement.
Mr. Emefiele, again assured that the CBN had the funds and was ready to ensure their disbursement through participating financial institutions at single digit interest rate.
He also urged farmers in the country to take advantage of the various agricultural intervention funds of the bank to boost the agricultural sector.