IDEAS home Printed from https://ideas.repec.org/p/ags/afma12/160460.html
   My bibliography  Save this paper

Enhancing Credit Flow to the Agricultural Sector: The Case of Central Bank of Nigeria’s Commercial Agriculture Credit Scheme (CACS)

Author

Listed:
  • Polycarp, I.M.
  • Odufote, B.O.

Abstract

Following the economic downturn of 2008/2009, the Commercial Agriculture Credit Scheme (CACS) was introduced to promote commercial agriculture and to complement other existing special initiatives of the Central Bank of Nigeria. After 3 years of its operation, the sum of N175.525 billion has been disbursed to 222 projects/ promoters. The distribution of the fund disbursed showed that 68% went to the processing segment of the value chain while 29% went to the production segment. While the CACS was found to be contingent to an increase in bank lending to the agricultural sector in Nigeria, there seem to be no significant effect of the fund on agricultural sector growth rate. It was therefore recommended that the 7 year tenor of the Scheme be extended and the need to set milestones (Specific targets and timelines) for deliverables like the right quantum of funds to be deployed, expected increase in flow of credit to agriculture, number of jobs to be created, expected growth rate in agricultural sector GDP etc. The need to build the capacity of bank staff and value chain actors and invocation of sanctions on erring banks to discourage infractions cannot be overemphasized.

Suggested Citation

  • Polycarp, I.M. & Odufote, B.O., 2012. "Enhancing Credit Flow to the Agricultural Sector: The Case of Central Bank of Nigeria’s Commercial Agriculture Credit Scheme (CACS)," 2012 Eighth AFMA Congress, November 25-29, 2012, Nairobi, Kenya 160460, African Farm Management Association (AFMA).
    • Handle: RePEc:ags:afma12:160460
    DOI: 10.22004/ag.econ.160460
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/160460/files/Enhancing%20Credit%20Flow.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.160460?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2009. "Awakening Africa's Sleeping Giant : Prospects for Commercial Agriculture in the Guinea Savannah Zone and Beyond [Le réveil du géant assoupi : Perspectives de l’agriculture commerciale dans les sava," World Bank Publications - Books, The World Bank Group, number 2640.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Smith A. R. Dossou & Augustin K. N. Aoudji & Albertine M. Houessou & Rodrigue S. Kaki, 2020. "Microfinance services for smallholder farmers: an assessment from rice farmers’ expectations in Central Benin," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-15, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    2. Abdul Nafeo Abdulai & Awudu Abdulai, 2016. "Allocative and scale efficiency among maize farmers in Zambia: a zero efficiency stochastic frontier approach," Applied Economics, Taylor & Francis Journals, vol. 48(55), pages 5364-5378, November.
    3. Yongjun Zhao, 2013. "China–Africa development cooperation in the rural sector: an exploration of land tenure and investments linkages for sustainable resource use," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 355-366, April.
    4. Alderete, María Verónica & Bacic, Miguel Juan, 2012. "The impact of inter-firm networks on regional development: the case of Mendoza´s wine cluster," Revista Lecturas de Economía, Universidad de Antioquia, CIE, June.
    5. Ahlerup, Pelle & Tengstam, Sven, 2015. "Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data," Working Papers in Economics 624, University of Gothenburg, Department of Economics.
    6. Daniele Guidi, 2011. "Sustainable Agriculture Enterprise: Framing Strategies to Support Smallholder Inclusive Value Chains for Rural Poverty Alleviation," CID Working Papers 53, Center for International Development at Harvard University.
    7. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    8. Douillet, Mathilde, 2012. "Trade policy reforms in the new agricultural context: Is regional integration a priority for Sub-Saharan African countries agricultural-led industrialization? Insights from a global computable general," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126546, International Association of Agricultural Economists.
    9. Shankland, Alex & Gonçalves, Euclides, 2016. "Imagining Agricultural Development in South–South Cooperation: The Contestation and Transformation of ProSAVANA," World Development, Elsevier, vol. 81(C), pages 35-46.
    10. Müller, Marc & Sanfo, Safietou & Laube, Wolfram, 2013. "Impact of Changing Seasonal Rainfall Patterns on Rainy-Season Crop Production in the Guinea Savannah of West Africa," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150412, Agricultural and Applied Economics Association.
    11. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    12. German, Laura A. & Bonanno, Anya M. & Foster, Laura Catherine & Cotula, Lorenzo, 2020. "“Inclusive business” in agriculture: Evidence from the evolution of agricultural value chains," World Development, Elsevier, vol. 134(C).
    13. John Murray McIntire, 2014. "Transforming African Agriculture," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 6(2), pages 145-179, May.
    14. Jayne, T.S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2016. "Agricultural Input Subsidy Programs in Africa: An Assessment of Recent Evidence," Food Security International Development Working Papers 245892, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Sarah Ann Wheeler & Alec Zuo & Henning Bjornlund & Makarius Victor Mdemu & Andre van Rooyen & Paiva Munguambe, 2017. "An overview of extension use in irrigated agriculture and case studies in south-eastern Africa," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 33(5), pages 755-769, September.
    16. Nanhthavong, Vong & Bieri, Sabin & Nguyen, Anh-Thu & Hett, Cornelia & Epprecht, Michael, 2022. "Proletarianization and gateways to precarization in the context of land-based investments for agricultural commercialization in Lao PDR," World Development, Elsevier, vol. 155(C).
    17. Hans P. Binswanger-Mkhize & Alex F. McCalla & Praful Patel, 2010. "Structural Transformation and African Agriculture," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 2(2), pages 113-152, May.
    18. Nolte, Kerstin & Ostermeier, Martin, 2017. "Labour Market Effects of Large-Scale Agricultural Investment: Conceptual Considerations and Estimated Employment Effects," World Development, Elsevier, vol. 98(C), pages 430-446.
    19. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications - Books, The World Bank Group, number 2263.
    20. Paul C. Samboko & Cliff Dlamini, 2017. "Institutional arrangements for biofuel feedstock production in Zambia," WIDER Working Paper Series 054, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afma12:160460. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/afmakea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.