The Central Bank of Nigeria (CBN) says it has revised the Commercial Agriculture Credit Scheme (CACS) introduced in April 2010.
The amendment is contained in a circular issued by Mr Kelvin Amugo, the Director, Financial Policy and Regulatory Department, CBN, on Tuesday in Lagos.
According to the bank, the scheme is to fast track development of the agricultural sector by providing credit facility to commercial agricultural enterprises at single digit interest.
Besides, it said that the revision of the guidelines was to sustain public interest in the scheme and enhance its operations.
According to the bank, the revision affects Sections 8.0 and 17.0 (b) (IV), which provides that payment of interest on CACS facilities should not be beyond nine per cent.
It said that the nine per cent must be inclusive of all charges.
The apex bank added that the charges should be shared in the ratio of seven per cent to the participating banks and two per cent to the CBN.
The CBN said that Section 8.0 Sub-section (ii) of the CACS guidelines had been amended accordingly to reflect the revised interest sharing ratio.
It said the revised fee sharing formula takes effect from April 29.
“Funds shall be released to the participating banks at two per cent rate after a confirmation of its intent/readiness to disburse the funds.
“Participating banks and the banking public are enjoined to note that the revised guidelines dated April 29, supersedes the previous ones,” it added.