Agric Intervention: CBN Warns Banks Against Funds Diversion




Whatsapp News

The Central Bank Nigeria has warned banks participating in the Private-Sector-led Accelerated Agriculture Development Scheme against diverting the funds meant for agro-processors and others.

The gave the warning in its guidelines for the scheme which was signed by its , Development Finance Department, Yusuf Philip, and released on Tuesday.

It said to address the food and youth unemployment challenges across the country, the Accelerated Agriculture Development Scheme was introduced to engage 370,000 youths in agricultural production in collaboration with governments.

The apex bank said the P-AADS was also developed to complement AADS by exploring private sector partnership to facilitate rapid land clearing for the production key agricultural commodities.

“The broad objective the P-AADS is to facilitate increased private sector agricultural production staple foods and industrial raw materials, as well as support food , job creation and economic diversification,” it said.

According to the guidelines, eligible participants include processors of agricultural commodities engaged in backward integration; prime anchors and commodity associations participating under the Anchor Borrowers’ Programme with evidence of contiguous land readily available for clearing and cultivation of agricultural commodities.

The said other and individuals with evidence of ownership of contiguous land readily available for clearing and cultivation of agricultural commodities could also participate.

Source