The government established the P-AADs loan for farmers a few months ago. And here is where the P-AADS loan comes in.

Farmers have a critical role in nation-building because the country’s food supply is completely dependent on their produce. The government recognizes this and has established several programs to assist and boost agricultural jobs in Nigeria.

P-AADS, or “Private Sector-Led Accelerated Agriculture Development Scheme,” is a Federal government of Nigeria farmers loan, among other agricultural loans, aimed at assisting farmers or new farmers in increasing food production and ensuring food security in Nigeria.

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Objectives Of P-AADS Loan

The following are the precise objectives of P-AADS loan:

Fast-track land clearance for agricultural commodity primary production.

Ensure food security by allocating huge tracts of land for agricultural development throughout all states.

Collaborate with agro-processors engaged in backward integration by providing funding for expanded land clearance nearby for the cultivation of commodities for the supply of industrial raw materials.

Support other capable parties who are interested in using suitable funding to release land for agriculture.

Individual farmers who will grow the cleared area will be able to create jobs.

Eligibility For P-AADS Loan for Farmers

Backward integration was practiced by agricultural commodity agro-processors.

Prime anchors and commodity linkages with proof of contiguous land easily available for clearance and production of agricultural commodities as part of the Anchor Borrowers’ Programme (ABP).

Other businesses and people having proof of ownership of contiguous property suitable for agricultural crop clearance and cultivation.

Existing or emerging agricultural production companies with proven capability and a bankable plan.

Have a satisfactory title to at least 20 hectares of contiguous land.

Have a solid credit history.

To participate, you must be able to furnish the necessary collateral.

Provide proof of direct capability to cultivate a focus commodity or farmer participation, including adolescents as in-growers or out-growers, to cultivate on cleared land.

Commodities For P-AADS Loan for Farmers

Agricultural products eligible for review under the Scheme are:

Rice
Maize
Cassava
Cotton
Wheat
Tomato
Poultry
Fish
Sorghum
Oil Palm
Cocoa
Livestock/Dairy

Any other commodities as may be listed by the CBN from time to time.

All You Need to know About For P-AADS Loan for Farmers

Rice, maize, cassava, cotton, wheat, tomato, poultry, fish, sorghum, oil palm, cocoa, and livestock/diary are among the agricultural commodities eligible for consideration under the plan, according to the guideline. And any additional commodities that the Apex Bank may list from time to time.

The money will be provided via the Anchor Borrowers Program (ABP).

Each obligor would be eligible for a maximum loan of N2 billion under the plan. For growing on the cleared farmland, the facility will be reimbursed from the Economics of Production (EOP).

The intervention’s interest rate will be 5.0 percent per annum (all-inclusive) until February 28, 2021. From March 1, 2021, the facility’s interest rate will be 9% per year (all-inclusive).

Annual crops have a maximum tenor of six (6) years, with a six-month moratorium in between. Perennial crops have a ten-year maximum duration with a one-year moratorium.

The title to the cleared land and any suitable collateral stipulated by the ABP will be pledged as collateral by participants under the Scheme. In the event that the participant defaults, the CBN will carry half of the credit risk.

The repayment of the facility will be stretched over the EOP of the farmed commodities and will be done in installments through the cooperating banks. Depending on the commodity funded, the participating banks must submit repayments to the CBN on a quarterly or annual basis.

Loan Tenor

Annual crops: Six (6) year maximum term with a six (6) month moratorium.

Perennial crops: With a one-year moratorium, the maximum tenor is ten (10) years.

Collateral Requirement: The title to the cleared land and any suitable collateral stipulated by the ABP will be pledged as collateral by participants under the Scheme. In the event that the participant defaults, the CBN will carry half of the credit risk.

How To Register/Apply For P-AADS Loan for Farmers

To view the application registration instructions, go to www.cbn.gov.ng/p-aads; however, a new URL for registration will be published soon.

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