Commercial Agriculture Credit Scheme
The Commercial Agriculture Credit Scheme (CACS) was introduced on 18th February 2009 to promote commercial agricultural enterprises in Nigeria. It is a sub-component of the Federal Government of Nigeria's Commercial Agriculture Development Programme (CADP).
The Objectives of the Scheme are:
- To fast-track development of the agricultural sector by providing credit facilities to commercial agricultural enterprises at a single digit interest rate
- Enhance national food security through increased output
- Generate employment
- Diversify the revenue base & increase foreign exchange earnings
- Provide input for the industrial sector on a sustainable basis
How to apply
All applications for loans under the Scheme are made through the Participating Financial Institutions (PFIs).
| Questions | Responses | |
|---|---|---|
| 1 | How do I apply for CACS? | All applications are through deposit money banks. |
| 2 | What kind of projects are funded under CACS? | Agricultural production and processing. |
| 3 | Can individuals and enterprises access CACS? | No. Only limited liability companies can access CACS. |
| 4 | Do I need collateral for CACS loan? | Yes. CACS loans require acceptable collateral by the Deposit Money Bank (DMB). |
| 5 | Can a company borrow for start up? | Yes. CACS loans are for start-up and existing eligible projects. |
| 6 | What is the tenor of CACS loans? | 12 months for working capital and up to 5 years for asset/machinery. |
| 7 | Can CACS be used for solid minerals? | No. Only agriculture. |
| 8 | Can CACS be used for importation of machinery? | Yes. CACS can be used for the purchase of agricultural machinery. |
| 9 | Is there a moratorium under CACS? | Yes. This is approved on a case-by-case basis and is project specific. |
| 10 | What is the loan limit for CACS? | ₦1 billion for State Governments and ₦2 billion for private companies. |