The Central Bank of Nigeria (CBN) has revised the Commercial Agriculture Credit Scheme (CACS), which was introduced in April 2010.
In a circular signed by the apex bank’s Director of Financial Policy and Regulatory Department, Mr. Kelvin Amugo, the amendment is contained in a circular issued by Mr.
Kelvin Amugo, the Director, Financial Policy and Regulatory Department, CBN, yesterday, the CBN stated that the review was to fast track development of the agricultural sector by providing credit facility to commercial agricultural enterprises at single digit interest.
The apex bank added that the amendment in the guidelines was carried out to sustain public interest in the scheme and enhance its operations.
According to the CBN, the revision affects Sections 8.0 and 17.0 (b) (IV), which provides that payment of interest on CACS facilities, should not be beyond nine per cent.
It said that the nine per cent must be inclusive of all charges.