Farmers in Kano state, Nigeria can now ease sign of relief because succour is already on the way for them to boost their output as Central Bank of Nigeria (CBN) extends loan facilities of about N213m to banks for onward lending to farmers under its Agricultural Credit Guarantee Scheme (ACGS), as World Bank also disbursed over N209m to more than three thousand farmers in the state as assistance for commercial agriculture, CEOAFRICA reports.

Speaking at the annual Bankers’ dinner award ceremony, the controller in charge of CBN Kano branch, Ameena Pindar Abubakar, disclosed that over 2295 farmers benefitted from similar loan last year. According to her, the loans delivered under the scheme by the bank is separate from those given under the Commercial Agricultural Credit Scheme (CACS), floated to boost credit facilities to commercial farmers.

Participating banks under the scheme include the following: Union Bank of Nigeria Plc, First Bank of Nigeria Plc, Unity Bank of Nigeria Plc, and the Kano West Microfinance Bank.

Furthermore, Abubakar pointed out that the commercial agricultural credit scheme was floated by the bank in collaboration with the Federal Government a way of promoting commercial agricultural enterprises in the country. She further explained that under the scheme, credit facilities are given to deserving commercial farmers at a single digit interest rate in order to assist them reduce the cost of their operations.

 She said,”We are happy to disclose that Kano State government in its efforts to boost agriculture had accessed this loan to N1bn for on-lending to cooperative farmers’ group across the value chain in the state.” She added that the money is to be disbursed through the microfinance bank recently established by the state government.

Meanwhile, beneficiaries of the World Bank loan include 1,637 male and 1,502 females in the state with the scheme expected to close on December 31, 2014.