Central Bank of Nigeria (CBN) to publish names of loan defaulters under its Agricultural Credit Guarantee Scheme.
Written by News Room on November 28, 2021
The Central Bank of Nigeria (CBN) has said it would soon publish in the newspapers names of loan defaulters under its Agricultural Credit Guarantee Scheme.
This is according to a document titled: Guidelines for the Agricultural Credit Guarantee Scheme, recently released by the CBN.
The CBN also warned that borrowers who divert the funds provided under the Agricultural Credit Guarantee Scheme Fund (ACGSF) might earn a five-year jail term.
According to the CBN, the Fund aims to provide a guarantee in respect of loans granted by lending banks for agricultural purposes under the scheme, adding that in furtherance of the scheme, the bank will do what it must to recover loans from defaulters.
The apex bank, however, cautioned that the agriculture loans must be used for purposes for which they were obtained, as a diversion would attract a five-year jail term.
The programme intends to boost the level of bank credit to the agricultural sector. Loans under the amended act include advances, overdrafts and any credit facility.
Amen J. Kantiyok