Monday, May 18, 2015 7.25 PM/ CBN
Commercial Agriculture Credit Scheme (CACS), intorduced in April 2010, has elicited tremendous interest from the Nigerian public. As part of efforts to sustain the public interest and enhance its opretaions to meet expectation, the Central Bank of Nigeria (CBN) has revised CAGS Guidelines.
The revision which affects Sections 8.0 and 17.0 (b) (iv) of the revised Guidelines, provides as follows;
Payment of interest on CAGS facilites shall not exceed 9.0 per cent, inclusive of all charges. These charges shall be shared in the ratio of 7 per cent to the participating banksand 2 per cent to the CBN.
Section 8.0 subsection (ii) of the CACS Guidelines has been amended accordingly to reflect the revised interest sharing ratio. The revised fee sharing formular shall take effect from the date of the revised Guidelines.
Funds shall be released to the participating banks at 2.0 per cent rate after a confirmation of its intent/readiness to disburse the funds- Section 17.0 (b) (iv) of the extent revised guidelines.
Participating banks and the banking public are enjoined to note that the revised Guidelines dated April 29, 2015 supersedes the previous ones.
For further information, kindly contact the Director, Developement Finance Dept, CBN Abuja