Quick Links

Social Media
Home

Development Finance

Development Financing | Activities | Agric Credit | Commodity Surveillance | Microfinance | SMEEIS | Refinancing & Rediscounting Scheme | Infrastructure Finance | Newsletter | Microfinance Advisory Board | Financial Inclusion

Agricultural Credit

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

Claims Settlement Activities

Default Claims | Interest Draw Back Claims

Default Claims
The Managing Agent of the Agricultural Credit Guarantee Scheme Fund (ACGSF), the CBN undertakes investigation with a view to determining the status of the default claims submitted by lending banks, and making appropriate recommendations to the Board of Agricultural Credit Guarantee Scheme Fund (ACGSF) for settlement.

Claims settlement is central to the sustenance of the Agricultural Credit Guarantee Scheme, in that banks look forward to the payment of the 75% of the amount in default net of the amount realized from the security pledged as enshrined in the Guidelines.

From inception to September 2006, a total of 17,693 claims valued N461.0 million were filed on the Fund. Out of these, 8,680 claims with a value of N174.12 million which represents 49.06% of the number and 37.78% of the value of the claims filed have been settled. Out of 9,013 outstanding claims valued ^286.88 million, 8, 112 or 90% valued ^136.70 or 47% were found to be later fully repaid by the borrowers before the could be processed for settlement by the Fund. The reasons for non settlement of the outstanding 901 claims rage from improper documentation to litigation and duplication of applications.

Nevertheless a claims settlement rate of 49.06% and 37.78% in number and value respectively, indicates that the Scheme is responsive to the demands of lending banks. However, it also indicates that the factors militating against prompt and full settlement of claims are enormous and need to be tackled forthrightly.

A cursory look at the consolidated statistics in table 1 below reveals the trend of activities from inception of the Scheme in 1978.

From inception of the scheme to the 1990’s, there was a high incidence of request for claims settlement following high default rate, and indicating that this period was a learning period for bank lending to the agricultural sector.

In the last two years, claims filed on the Fund have reduced remarkably. This can be traced to the introduction of the Interest Drawback Programme (IDP) which has made customers repay their loans on a timely basis. 

Cumulative Statistics On ACGSF Claims Settled

Year

Claims Filed

Claims Settled

No.

Amount ('000 Naira)

No.

Amount ('000 Naira)

1978

0

0

0

0

1979

0

0

0

0

1980

18

90

0

0

1981

38

613

0

0

1982

53

3,427.60

36

241.3

1983

52

3,680.00

24

147.9

1984

121

3,880.00

0

0

1985

94

6,636.50

93

431

1986

125

6,385.40

0

0

1987

85

2,155.60

68

534.1

1988

150

7,933.10

52

380.2

1989

160

8,526.60

48

191.2

1990

236

21,756.80

51

770.1

1991

810

27,972.50

67

253.7

1992

1,362

31,509.50

65

363.3

1993

998

28,659.10

91

455.9

1994

1,263

60,525.90

56

222.6

1995

598

60,149.90

130

2,817.60

1996

442

5,402.90

166

1,090.40

1997

232

5,181.60

690

6,134.20

1998

78

2,746.70

826

6,906.20

1999

79

2,488.80

498

5,471.30

2000

173

8,044.30

288

1,691.20

2001

312

7,216.40

436

6,405.00

2002

206

6,078.30

124

3,210.20

2003

506

9,236.30

168

3,440.30

2004

213

11,575.10

2,065

97,901.90

2005

8,074

731,845.87

2,382

18,782.06

2006

1,215

129,986.41

256

16,344.49

2007 517 31,791.87 165 23,324.40
2008 529 46,623.97 44 2,033.79
2009 54 31,375.08 38 14,231.70
2010 410 74,482.30 285 19,103.60
2011 (April) 890 150,345.21 24 9,706.35

TOTAL

20,093

1,528,322.61

9,236

242,585.99

 

Click here to see frequently asked questions on Development Finance

Facts : 2/1/1933
Indigenous Banking in Nigeria:The story of indegenous banking in Nigeria began with the establishment of the National Bank of Nigeria Limited in February 1933. This was followed by the Agbonmagbe Bank Limited in 1945, now Wema Bank. Afterwards, the African Development Bank Limited, now known as African Continental Bank Plc., was constited in 1948.
See All: Facts | Events

Related Links