CBN Moves to Increase Loans to Agribusinesses by Six Percent

The Central Bank of Nigeria (CBN) has said it will implement 10 percent banking sector credit to the agriculture sector, by 2024.

This is from the current four percent, indicating a six percent increase.

CBN Governor, Godwin Emefiele made the disclosure at the Bankers Committee summit in Lagos.

Nigeria remains one of the largest producers of exportable agricultural commodities, with high revenue generation potential, if properly tapped.

A group of international trade experts had made this submission during a virtual town hall meeting hosted by the Network of Practicing Non-Oil Exporters of Nigeria (NPNEN), as reported by AgroNigeria.

Similarly, the CBN Governor stated that the bank would scale up efforts to prioritize non-oil commodity export.

“Over the next three years, we will continue to encourage the banking sector to increase its loans to the agriculture sector from four percent to 10 percent by 2024.

“We intend to aggressively implement our N500 billion facility aimed at supporting the growth of our non-oil exports, which will help to improve non-oil export earnings.

“Exporters will be further encouraged to repatriate their export proceeds as stipulated under our extant laws. The CBN will continue to ensure that exporters have unfettered access to their export proceeds,” he said.

According to Emefiele, the decision is hinged on the need for the banking sector to play a principal role in the economic recovery of the nation.