Intervention Funds: CBN Cautions Banks Against Double-Digit Interest
Central Bank of Nigeria Governor Godwin Emefiele has warned Participating Financial Institutions against charging double-digit rate on intervention funds guaranteed by the apex bank.
The CBN governor was speaking at an interaction between the Presidential Task Force on Agricultural Commodities and Production and young farmers at the Owowo Model Farm Estate in Abeokuta, the Ogun state capital.
Emefiele assured the young farmers of the CBN funding support through their respective PFIs.
He further encouraged them to report any bank that charges above 9 per cent interest on loans guaranteed by the CBN.
The apex bank governor then assured the farmers of the availability of the CBN development finance officers to help them access credit from its various intervention funds.
Seize the opportunity
He charged the young farmers to take advantage of the Bank’s Youth Entrepreneurship Development Programme and the Micro, Small and Medium Enterprises Development Fund to create wealth.
Also, the Minister of Agriculture and Rural Development Audu Ogbeh assured the youth of Federal Government’s support in their drive to make legitimate earnings from agriculture.
Ogbeh then expressed confidence in the ability of the youth to produce agricultural commodities that would earn the country the much-needed foreign exchange.
He also commended the effort of the CBN governor, who he noted was very concerned about the import bills of the country, particularly as it had to do with rice importation.
President Muhammadu Buhari, on 17 November, 2015, launched the CBN Anchor Borrowers’ Programme in Kebbi state.
The programme is aimed at upgrading small farmers to commercial farmers. It is focused on achieving the trio objective of stimulating the needed capacity to meet the nation’s increasing food needs.
Some of the intervention funds by the CBN in the agricultural sector include Agricultural Credit Support Scheme, Commercial Agriculture Credit Scheme and Commercial Agriculture Credit Scheme.