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Interest Draw Back Claims

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Agricultural Credit

Agric. Credit Guarantee Scheme Fund | Agric. Credit Support Scheme
Claims Settlement Activities

Claims Settlement Activities

Default Claims | Interest Draw Back Claims

Interest Drawback
Instituted in year 2004 as a palliative measure for beneficiaries of agricultural loans under ACGSF who are able to repay their loans according to contractual terms, the programme is one of the products initiated by the CBN to encourage financial institutions to participate under the scheme.

The programme, guarantees the payment of 40% as rebate to farmers on the interest component of all loans repaid as at when due, thus reducing the effective borrowing rate for the farmers. Since its inception, it has been able to reach a number of clients as shown in the tables below.

INTEREST DRAW BLACK CLAIM SETTLEMENT

Year

Claims Settled

Cummulative

  Number Value Number Value
2004 774.00 4,552,029.78 774.00 4,552.029.78
2005 8,681.00 28,652,901.09 9,455.00 33,204,930.87
2006 15,796.00 48,725,220.91 25,251.00 81,930,151.78
2007 20,776.00 90,318,114.70 46,027.00 172,248,266.48
2008 31,149.00 140,492,542.69 77,176.00 312,740,809.17
2009 15,545.00 111,572,636.59 92,721.00 424,313,445.76
2010 26,416.00 208,455,429.95 119,137.00 632,768,875.71
April 2011 9,870.00 68,886,265.82 129,007.00 701,655,141.53

 

As shown above, the volume and value of claims paid to benefiting customers has been on the ascendancy. Similarly, the number of participating banks has been on the increase.

The Scheme has thus achieved the following objectives:

  • Increased participation of banks, as they are assured of adequate repayments of their loans
  • Increased outreach to beneficiaries, especially the rural poor (poverty reduction.
  • Reduced default claims settlement under the ACGSF.

The Interest Drawback Programme (IDP) is a success story. Since the inception of the IDP loan repayment under the ACGSF has been on the increase. For instance, total loan repayment under the scheme amounted to 26,208 loans valued ^1,171.74 million in 2004; 32,549 loans valued 1,861,097.1million .in 2005 and 25,431 loans valued ^1,623,474.1 million as at September, 2006.

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Facts : 1/1/1965
Central Bank of Nigeria, Ibadan Branch:In the year 1965, The Central Bank of Nigeria,Ibadan Branch was opened for business.It was the third Central Bank office that was established and it brought to 4, the number of Central Bank offices in Nigeria at that time.
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