*The Bankers鈥� Bank restates the Agricultural Credit Guarantee Scheme Fund is established to encourage sufficient food production by ensuring farmers have access to soft loans to facilitate their agricultural activities in Nigeria

Isola Moses | 绿帽献妻

In the Bank鈥檚 efforts at supporting improved agricultural productions and ensuring food security in the country, the Central Bank of Nigeria (CBN) has warned stakeholders that it is an offence for which any culprits may be imprisoned for five years, to apply agriculture 聽loans for purposes other than those for which they are given.

绿帽献妻 reports the Bankers鈥� Bank issued the caution in a document that spelt out the guidelines for the agricultural credit guarantee scheme in Nigeria.

Farmers cultivating farmland

According to CBN, borrowers who diverted funds provided under the Agricultural Credit Guarantee Scheme Fund (ACGSF) could spend five years in prison.

The policy document also stated: 鈥淏anks should remind prospective borrowers under the Scheme that it is an offence for which one may be imprisoned for five years, to apply the loan for purposes other than those for which they are given.鈥�

The apex bank further noted that the loans must be used for purposes for which they were obtained in the first place.

Besides, the Bank equally cautioned that it would soon publish names of loan defaulters under ACGSF initiative.

It said: 鈥淭he Fund, if considered necessary, will publish names of defaulters in the newspapers and report the same to the Credit Information Bureau of Nigeria.鈥�

The CBN noted that the Bank established Fund to encourage sufficient food production in the country by ensuring farmers have access to soft loans to facilitate their agricultural activities.

It, therefore, stated that loans under the programme includes advances, overdrafts and other credit facilities.