The Central Bank of Nigeria said that it had guaranteed loans worth N1.5bn for 5,358 farmers under the Agricultural Credit Guarantee Scheme in the third quarter of 2007.
This amount represented an increase of 153.3 per cent and 111.5 per cent over the levels in the preceding quarter and corresponding quarter of 2006, the bank said in its third quarter report.
The ACGS is managed by the CBN that seeks to encourage banks to increase lending to the agricultural sector by providing guarantees against inherent risks.
The CBN said a sub-sectoral analysis of the loans guaranteed indicated that the food crops sub-sector had the largest share of N1.4bn or 91.5 per cent guaranteed to 5,264 beneficiaries, while the livestock sub-sector received N88.4m or 5.8 per cent guaranteed to 71 beneficiaries.
According to the report, the fisheries sub-sector obtained N32.1m or 2.1 per cent for disbursement to seven beneficiaries, while the cash crops sub-sector got N7.7m or 0.5 per cent guaranteed to 14 beneficiaries.
“The balance of N1.7m or 0.1 per cent, went to two beneficiaries in the ‘others’ sub-sector. Further analysis showed that 33 states, including the FCT, benefited from the scheme during the quarter, the highest and lowest sums of N242.3m (15.8 per cent) and N0.5m (0.03 per cent) went to Adamawa and Zamfara states, respectively,” the bank said.
Agricultural activities during the third quarter of 2007 centered on harvesting of various root crops, especially yams, Irish potatoes, sweet potatoes, groundnuts and maize, according to the CBN.
The bank noted that following the increased frequency of rainfall, planting of late crops continued in some areas.
It said, “In the northern part of the country, the predominant activities included preparation of land and nurseries for tomatoes, pepper, carrots, cabbage and other vegetables.
“In the livestock sub-sectors, poultry farmers intensified production of poultry products, especially during the last month of the quarter, in preparation for the approaching festive season.”
The CBN said aggregate output growth in the economy measured by the gross domestic product, was estimated at 6.05 per cent during the third quarter of 2007, compared with 5.73 per cent in the preceding quarter.
“The growth was driven by the non-oil sector, which grew at an estimated 9.47 per cent. The major agricultural activities during the third quarter of 2007 were harvesting of various root crops such as yam, Irish potatoes, sweet potatoes, groundnuts and maize,” CBN said.
According to the bank, retail price survey of most staples showed price increases in the third quarter of 2007.
Twelve of the 14 commodities monitored, namely; guinea corn, white beans, white maize, yellow maize, groundnut oil, brown beans, vegetable oil, local rice, white garri, eggs, yellow garri and palm oil recorded price increases over their levels in the preceding quarter.
“This was, however, moderated by the components of millet and yam flour whose prices declined by 1.9 and 20.5 per cent, respectively, during the review quarter,” the bank added.
The bank noted that the prices of all Nigerian major agricultural commodities at the London Commodities Market recorded increases during the review quarter.
“All the six commodities monitored namely; coffee, palm oil, cocoa, copra, soya bean and cotton in dollar terms, recorded price increases over their levels in the preceding quarter,” it added.
By Atser Godwin
The Punch
Tuesday, November 27, 2007
