In order to enhance the effectiveness of the Commercial Agriculture Credit Scheme (CACS) as well as mitigate the risk faced by participating financial institutions in financing the agriculture sector, the Central Bank of Nigeria (CBN) has reviewed the guidelines for the scheme.

The review, according to a circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, affected section 16 and 17 of the guidelines and introduced significant changes, including a requirement that henceforth, the Nigeria Agriculture Insurance Corporation (NAIC) should provide insurance cover for all agricultural facilities/projects under the CACS in line with the NAIC Act.

In furtherance of the above revision, the central bank has directed the immediate commencement of insurance premium payments by borrowers under the CACS scheme.

As part of its developmental role, the CBN in collaboration with the federal government, represented by the Federal Ministry of Agriculture and Rural Development (FMARD), had established the CACS for promoting commercial agricultural enterprises in Nigeria, which is a sub-component of the Federal Government of Nigeria Commercial Agriculture Development Programme (CADP).