First Bank Commercial Agriculture Credit Loan Scheme – The Commercial Agriculture Credit Scheme is a special credit intervention fund of originally, N200billion created by the Federal Government of Nigeria to fast-track the development of the agricultural sector economy by providing credit facilities to commercial agricultural enterprises at a single-digit interest rate.
The key agricultural commodities covered under the Scheme are:
- Production:
- Cash Crops: Cotton, Oil Palm, Fruit Trees. Rubber, Sugar Cane, Jatropha Curcas and Cocoa.
- Food Crops: Rice, Wheat, Cassava, Maize/Soya, Beans/Millet, Tomatoes and Vegetables
- Poultry: Broilers and Eggs Production
- Livestock: Meat, Dairy and Piggery
- Aquaculture: Fingerlings and Catfish
- Processing: Feed-mills Development, Threshing, Pulverisation and other forms of transmutation for value addition.
- Storage: Commodities, Agro-Chemicals and Warehousing.
- Farm Input Supplies: Fertilizers, Seeds/Seedlings, Breeder Stock, Feeds, Farm equipment & Machineries.
- Marketing: Agricultural commodities under the focal investment areas.
Features
- Single digit interest rate (9% all-in, max).
- Single obligor limit of up to N2billion for medium and large scale private sector enterprises and N1billion for state governments.
- The participating private sector entity must have a minimum farm asset base of N50million (excluding farm land).
- Irrevocable Standing Payment Order (ISPO) is required in the case of State Governments.
- Fund available till 2025.
- Loan tenor of up to 5 years.
Value Proposition/Gain
- Funding provided at cheap cost.
- Longer tenor of loan.
- Funding targeted to specific agricultural production
Target Market
- Medium or Large Scale Commercial Farms involved in the cultivation of crops, rearing of livestock, fisheries, etc.
- Limited Liability Companies involved in agricultural production, storage, processing, marketing, and enterprise development.
- State Governments and the FCT (for on-lending/special intervention to small-scale farmers
How to Apply for Commerical Agriculture Credit Loan Scheme
To begin, visit https://www.firstbanknigeria.com/business/