NIGERIA NEWSCBN Agricultural Loan 2021 Application – How to Apply

CBN Agricultural Loan 2021 Application - How to Apply

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The CBN Agricultural Loan 2021 was established by Decree No. 20 of 1977 and started operations in April 1978. Its original share capital and paid-up capital were N100 million and N85.6 million, respectively. The Federal Government holds 60% and the Central Bank of Nigeria, 40% of the shares.

To apply go to https://www.cbn.gov.ng/devfin/acgsf.asp

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The capital base of the Scheme was increased to N3 billion in March 2001. The Fund guarantees credit facilities extended to farmers by banks up to 75% of the amount in default net of any security realized. The Fund is managed by the Central Bank of Nigeria, which handles the day-to-day operations of the Scheme. The Guidelines stipulate the eligible enterprises for which guarantees could be issued under the Scheme.

How the CBN Agricultural Loan 2021 works

  • The CBN would create a Fund to be known as ‘CBN Agricultural Loan – Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank.
  • Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as a contribution to the Fund.
  • Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.

Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing.


Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.

How to access CBN Agricultural Loan 2021

The application of the Fund shall be categorised into three broad components. They are debt, equity and developmental components.

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The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.

Asset purchased shall be registered with the National Collateral Registry (NCR).

  • Financing limit: N10,000,000
  • Mark-up: 5% per annum

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  • Tenor: Up to 7 years (depending on the nature/gestation period of the
    project)
  • Moratorium: Maximum of 18 months for principal and 6 months on the mark-up.

Requirements for CBN Agricultural Loan 2021

  • Duly completed application form.
  • Bank Verification Number (BVN).
  • Certificate of Training from recognised Entrepreneurship Development Institution (EDI) or evidence of membership of organised private sector association.
  • Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises only).
  • Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).

The CBN Agricultural Loan 2021 is targeted at Nigerian youth between 18 and 35 years, seek to promote interaction among state governments, the CBN and other stakeholders in the agricultural value chain in each state.

For more information regarding the CBN Agricultural Loan 2021 kindly send us a message via searchngr24@gmail.com and we would give you a reply in a jiffy.

Bernard Bassey is a graduate of Software Engineering from AfriHUB University, Abuja. He is an expert in field journalism, his interest in socio-politics activities is keen.

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