CBN orders farmers to insure ACGSF loans

The Central Bank of Nigeria has said farmers must have an insurance cover for loans to be disbursed to them under the Agricultural Credit Guarantee Scheme Fund.

The CBN said this in its guidelines for the Agricultural Credit Guarantee Scheme Fund released on Friday.

“All loans under the scheme must be insured as a condition precedent to guarantee,” it said.

According to the central bank, the security that may be offered to a bank for the purpose of any loan under the scheme may include a charge on land in which the borrower holds a legal interest or a right to farm, or a charge on assets on the land, including fixed assets, crops or livestock.

Read more from the source- EIN