Zenith, Sterling, UBA, FBN lead other banks in CACS disbursement
by HOPE MOSES-ASHIKE
February 21, 2018 | 4:46 pm| | | Start Conversation
Zenith Bank, Sterling Bank plc, United Bank for Africa (UBA) and First Bank of Nigeria (FBN) led other deposit money banks in the disbursement of credit under the Commercial Agriculture Credit Scheme (CACS) between October and December 2017.
The scheme was established by the CBN in collaboration with the Federal Government of Nigeria, represented by the Federal Ministry of Agriculture and Rural Development (FMARD) to promote commercial agricultural enterprises in Nigeria.
At end of December 2017, total amount released by the CBN under the CACS from inception to the participating banks for disbursement stood at N551.18 billion for 547 projects.
The projects included 65 state government projects under CACS and eight Paddy Aggregate Scheme (PAS).
The breakdown of the disbursement shows that Zenith Bank disbursed N114.65 billion for 72 projects, Sterling Bank, N68.67 billion for 40 projects, UBA 67.06 for 45 projects and First Bank of Nigeria disbursed N55.77 billion for 101 projects.
The CBN’s economic report for fourth quarter revealed that out of the 20 participating banks Jaiz Bank plc had N0.00 billion disbursement for one project, Suntrust Bank limited 1.85 billion for two projects, Citibank plc N3 billion for two projects and Wema Bank plc N2.12 billion for 12 projects.
Other banks are Access Bank plc, which disbursed N36.66 billion for 26 projects, GTBank N37.70 billion for 27 projects, Union Bank Nigeria plc N28.24 billion for 37 projects, Stanbic IBTC Bank N27.66 billion for 45 projects, Fidelity Bank plc N25.18 for 18 projects, Unity Bank plc N24.33 billion for 26 projects, Skye Bank N13.17 billion for 10 projects, FCMB N12.43 billion for 24 projects, Keystone N14.05 billion for 14 projects, Heritage Bank plc N6.82 billion for 14 projects, Ecobank N6.38 billion for 10 projects and Diamond Bank plc disbursed N4.85 billion for 21 projects.
CACS is financed from the proceeds of the N200 billion, three year bond raised by the Debt Management Office (DMO) and made available to participating bank(s), to finance commercial agricultural enterprises.
One of the objectives of the scheme is 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.
However, banking system’s credit to the private sector grew moderately by 1.2 per cent, on quarter-on-quarter basis, to N22.3 trillion, compared with 0.2 per cent growth at end of September 2017. The development relative to the preceding quarter was attributed to the 0.1 and 18.9 per cent increase in claims on the core private sector and claims on the state and local governments.
Over the level at end-December 2016, banking system’s credit to the private sector grew by 1.4 per cent, compared with the 0.2 percent growth at end of September 2017.
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