Commercial Agriculture Credit Scheme (CACS) for (SMEs) in Nigeria

The Commercial Agriculture Credit Scheme (CACS) for Small and Medium-Sized Enterprises (SMEs) in Nigeria

Small and medium-sized enterprises (SMEs) in Nigeria looking to expand their businesses in the agricultural sector can benefit from the Commercial Agriculture Credit Scheme (CACS), which is an initiative of the Central Bank of Nigeria (CBN). The scheme is designed to provide affordable credit facilities to commercial farmers in Nigeria. In this article, we will provide you with an overview of the CACS and how to apply for the scheme online.

What is the Commercial Agriculture Credit Scheme (CACS)?

The CACS is a loan scheme initiated by the CBN to provide credit facilities to commercial farmers in Nigeria. The scheme aims to improve the agricultural sector in Nigeria by providing loans at a low-interest rate to commercial farmers for the production and processing of agricultural products. The CACS is available to SMEs, large-scale farmers, and agro-allied enterprises.

Objectives of the Scheme

The objectives of the scheme are:
1) To fast track development of the agricultural sector of the Nigerian economy by
providing credit facilities to commercial agricultural enterprises at a single digit
interest rate;
2) Enhance national food security by increasing food supply and effecting lower
agricultural produce and product prices, thereby promoting low food inflation;
4) Reduce the cost of credit in agricultural production to enable farmers exploit the
potentials of the sector; and
4) Increase output, generate employment, diversify the revenue base, increase
foreign exchange earnings and provide input for the industrial sector on a
sustainable basis.

Target Agricultural Commodities and Value Chains

The key Agricultural commodities to be covered under the Scheme are:
(i) 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
(ii) Processing: Feed mills Development, Threshing, Pulverisation and other
forms of transmutation for value addition.
(iii) Storage: Commodities, Agro-Chemicals and Warehousing
(iv) Farm Input Supplies: Fertilizers, Seeds/Seedlings, Breeder Stock,
Feeds, Farm equipment & Machineries.
(v) Marketing: Agricultural commodities under the focal investment areas.

How to Apply for the CACS

To apply for the CACS, SMEs must meet the following requirements:

1. The applicant must be a Nigerian citizen who is at least 18 years old.

2. The applicant must have a business plan that details the type of agricultural activity to be undertaken, the amount of money required, and the expected output.

3. The applicant must provide evidence of ownership of land or proof of leasehold of not less than 10 years.

4. The applicant must have a guarantor who is a recognized person of integrity and must have a satisfactory credit history.

Once the SME has met the above requirements, they can proceed to apply for the CACS loan. The application can be done online by visiting the CBN website and navigating to the CACS loan application page. The SME will need to fill out the loan application form and submit it online. Once the application has been processed and approved, the loan amount will be disbursed to the SME’s bank account.

Benefits of the CACS for SMEs

The CACS provides several benefits for SMEs looking to expand their businesses in the agricultural sector, including:

1. Affordable Interest Rates: The CACS offers low-interest rates on loans, making it easier for SMEs to access credit facilities.

2. Long Repayment Period: SMEs can repay the loan over a period of up to 10 years, providing them with sufficient time to grow and develop their businesses.

3. Flexible Loan Terms: The CACS offers flexible loan terms, allowing SMEs to choose the type of loan that best suits their needs.

Conclusion

The Commercial Agriculture Credit Scheme (CACS) is an initiative of the Central Bank of Nigeria (CBN) aimed at providing credit facilities to commercial farmers in Nigeria, including small and medium-sized enterprises (SMEs). By providing affordable loans with flexible repayment terms, the CACS helps SMEs to grow and expand their businesses in the agricultural sector. SMEs looking to apply for the CACS can do so online by visiting the CBN website and following the application process outlined above.