Agric sector’s non-performing loans hit N49.96bn

The non-performing loans in the agriculture sector rose by 3.36 per cent from N48.33bn as of the end of the third quarter of 2018 to N49.96bn as of the end of September 2019.

According to data from the National Bureau of Statistics, the non-performing loans in the banking sector stood at N1.1tn in the period under review.

The Central Bank of Nigeria had however continued to introduce initiatives to improve lending to the farmers.

The bank stated in its economic report for the month of November that dry season set in for most parts of the country in the review period.

It stated that the predominant agricultural activities in November 2019 were harvesting of grains, legumes, and tubers across the country.

In the livestock sub-sector, farmers intensified their activities in preparation for the expected end of year bumper sales, it added.

The CBN stated, “In November 2019, the sum of N1.07bn was disbursed to three projects under the Commercial Agriculture Credit Scheme. Thus, the total sum released to the economy, under the Scheme from inception in 2009 to date, stood at N611.5bn, in respect of 596 projects.

“In November 2019, 62 projects repaid the sum of N8.15bn, of which payment by 59 projects were steady repayments, while three projects were full repayments.”

The bank said the repayments brought the cumulative repayment under CACS from inception in 2009 to N384.41bn.

Analysis of the number of projects financed under the CACS by value chain indicated, that of the 596 CACS sponsored projects, production accounted for 61.6 per cent and dominated the activities funded, while processing accounted for 27.7 per cent, it stated.

It stated that these were followed by storage, input supplies and marketing, which accounted for 4.7 per cent, 3.3 per cent and 2.7 per cent, respectively.