CBN Disburses N596bn to Farmers

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Obinna Chima
The total amount released by the Central Bank of Nigeria (CBN) under the Commercial Agriculture Credit Scheme (CACS) from inception to the participating banks for disbursement stood at N596.44 billion for 576 projects as at the end of the fourth quarter of 2018.

Of the total number of projects, 34 were in respect of state governments.
The Central Bank of Nigeria (CBN) disclosed this in its Economic Report for the fourth quarter of 2018, released recently.

A total of N852.15 million was guaranteed to 5,454 farmers under the Agricultural Credit Guarantee Scheme (ACGS) in the fourth quarter of 2018. The amount represented a decrease of 40.1 per cent and 5.9 per cent below the levels in the preceding quarter and the corresponding period of 2017, respectively.

The report noted that the cessation of rainfall led to widespread dryness of severe to-extreme intensity across the country in fourth quarter of 2018. Generally, the predominant agricultural activities during the review quarter were the harvesting of tubers, grains and vegetables, while pre-planting operations in preparation for dry season planting commenced.
In the livestock sub-sector, farmers engaged in the fattening of cattle and stocking of broilers to take advantage of yuletide season sales.

Sub-sectoral analysis of the ACGS showed that food crops got the largest share, amounting to N369.54 million (43.4%), guaranteed to 2,373 beneficiaries; followed by mixed crop sub-sector, which received N162.75 million (19.1%), guaranteed to 1,710 beneficiaries N138.44 million (16.2%) was guaranteed to livestock sub-sector in favour of 564 beneficiaries; while cash crop, fisheries and ‘others’ sub-sectors got N105.28 million (12.4%), N58.82 million (6.9%), and N17.32 million (2.0%), guaranteed to 542, 175 and 90 beneficiaries, respectively.

Analysis by state showed that 30 states and the Federal Capital Territory benefited from the scheme with the highest and lowest sums of N95.83 million (11.3 per cent) and N1.99 million (0.2 per cent) guaranteed to Ogun and Bayelsa states, respectively.

Activities in the industrial sector showed improvements during the fourth quarter of 2018, on account of expansion in the manufacturing activities due to increased employment, output and new orders in the manufacturing sub-sector. Slowdown in prices of input also contributed to increased activities. Thus, industrial production in the review quarter indicated a marginal increase over the level in the preceding quarter. At 119.1 (2010=100), the estimated index of industrial production in the review quarter, rose by 1.7 per cent above the level in the preceding quarter. The increase reflected, improved activities in all sub-sector of the industry.

The estimated index of manufacturing production in the fourth quarter of 2018, at 188.6 (2010=100), showed a marginal increase of 3.2 per cent, when compared with the level in the preceding quarter.
Capacity utilisation was estimated at 55 per cent showing a marginal increase of 0.2 percentage point over the level in the preceding quarter.

“The improvement was due to continued expansion in consumer demand and moderated input prices,” it stated.
According to the report, global growth was estimated at 3.7 per cent for 2018, same as was for 2017.
This was due to a weaker outlook for some key emerging market and developing economies, arising from country-specific factors, tighter financial conditions, geopolitical tensions, and higher oil import bills.

Growth in advanced economies, was estimated at 2.4 per cent in 2018 compared with 2.3 per cent in 2017. The United States economy, was projected to peak at 2.9 percent compared with 2.2 per cent in 2017. This was supported by the pro-cyclical Fiscal Stimulus after eight consecutive years of expansion and still-loose financial conditions (despite expected monetary tightening).
In the Euro area, growth gradually slowed further to 2.0 per cent compared with 2.4 per cent in 2017.

In the emerging market and developing economies, growth was estimated to remain steady at 4.7 percent in 2018 when compared with the figure in 2017.
The growth prospects of many energy exporting economies were boosted by higher oil prices, but growth was revised downward for Argentina, Brazil, Iran, and Turkey, among others, reflecting country-specific factors, tighter financial conditions, geopolitical tensions, and higher oil import bills. Growth in China was estimated at 6.6 percent in 2018, reflecting slowing external demand growth and necessary financial regulatory tightening.