The Central Bank of Nigeria has amended the Commercial Agriculture Credit Scheme (CACS) guidelines in a bid to enhance and improve the operation of the scheme.
The central bank in a circular titled: “Amendments to Pricing of Commercial Agriculture Credit Scheme (CACS) and Guidelines addressed all banks and financial institutions informing them about the amendment to Section 8.0 and 17.0 (b) (iv) of the guidelines.
The circular, signed by the CBN Director, Financial Policy and Regulation Department, Kevin Amugo read “The CACS introduced in April 2010, has elicited tremendous interest from the Nigerian public. As part of efforts to sustain the public interest and enhance its operations to meet expectations, the Central Bank of Nigeria (CBN) has revised the CACS guidelines.
“Payment of interest on CACS facilities shall not exceed 9.0 per cent, inclusive of all charges. These charges shall be shared seven per cent to the participating bank and two per cent to the CBN. Section 8.0 sub-section (ii) of the CACS guidelines has been amended accordingly to reflect the revised interest rate ratio. The revised fee sharing formula shall take effect from the date of the revised guidelines.
“Funds shall be released to participating banks at two per cent interest rate after a confirmation of its intent/readiness to disburse the funds –Section 17.0 (b) (iv) of the extant revised guidelines. Participating banks and the banking public are enjoined to note that the revised guidelines dated April 29, 2015 supersedes the previous ones.”