Financial Outreach and Performance of Central Bank of Nigeria’s (CBN) Agri-Based Micro-Credit Scheme

Abstract

The study ascertained the financial outreach and performance of different CBN Agribased microcredit schemes. The study specifically looked at the different CBN Agribased micro-credit schemes; determined the financial outreach of the different CBN Agribased micro-credit schemes; determined the performance of the different CBN Agribased micro-credit schemes; determined the sustainability of the different CBN Agribased micro-credit schemes. Secondary data were used in this study, particularly published data from the Central Bank of Nigeria’s Annual Report 2017 and NPC Annual Report. This study covered a point of 2016-2017. Data were analysed using simple descriptive statistics, such as percentages and means. The study found that there was a 29.39% decline in outreach of micro credit by CBN between 2016 and 2017, and that when compared with potential users, there was low density of outreaches. Furthermore, 98.3% of the outreach of microcredit by CBN were targeted at individuals under ACGS. In addition, the results showed that micro credit released under CACS by value-chain in 2017 were for production, agricultural infrastructure, input and processing with implementation level of 37.4%, 34.3%, 15.5% and 12.8% respectively. Also, the result showed that the client outreach for micro, small and medium enterprises development fund increased by 25.1% between 2016 and 2017. Finally, the loan repayment rate of 2700% for ABP between 2017 and 2016 showed that ABP was sustainable.  The study therefore recommended that CBN should provide adequate funding to the various  agribased microcredit schemes. This measure will enhance effective credit delivery (outreach) to credit users. More so, operators of the various CBN schemes should release the necessary credits to the participating financial institutions in order to service credit users early enough. This would ensure effective utilization of credit among credit users. Furthermore, operators of the various CBN schemes should deploy more time to credit recovery.