CBN NON INTEREST GUIDELINES FOR THE ACCELERATED AGRICULTURAL DEVELOPMENT SCHEME (AADS)
The objective of the Accelerated Agricultural Develoment scheme (AADS) Programme is to engage a minimum of 370,000 youths in agricultural production across the country over the next three years in order to reduce unemployment among the youths in the country.
The specific objectives:
i. Promotion of National food security in each State through sustained interactions
amongst stakeholders in the agricultural value chain;
ii. Collaboration amongst State Governments, the CBN and relevant other
stakeholders to create jobs in the agricultural sector, with strong focus on crops
where States have comparative advantage; and
iii. Provision of short and medium term funding windows for the implementation of
Nigerian youths within the ages of 18 to 35 years.
Mobilization and Clustering
i. State government to mobilize prospective young farmers with representation from
all Senatorial Zones.
ii. State Governments/FCT to provide agricultural land in contiguous locations in all
senatorial Zones. Minimum of 100 hectares per cluster
iii. Prospective entrepreneurs (that meet the eligibility criteria) shall be grouped into
clusters by commodity to be produced.
iv. State government to allocate 2-5 hectares of land per beneficiary
v. State Government to provide access roads, water sources and other infrastructure
that will enhance agricultural production on the land
vi. States may charge a rental on land (Max. of N10,000 per ha) to defray the cost of
land clearing and other infrastructure provided. Rental charged will be embedded
in the Economics of Production (EoP) of the farmer.
i. The PFIs will act as agents of the CBN in disbursing the financing to the
beneficiaries, which shall be in kind.
ii. The PFIs shall purchase the inputs for on-selling to the beneficiaries, using
CBN approved non-interest financing contract of Murabaha, Istisna’, etc at
an all-inclusive rate of return of 9% p.a. For the financing of labour, the PFI
shall use Service Ijarah or any other appropriate CBN approved contract for
NIFIs with the same all-inclusive rate of return of 9%.
iii. Financing tenor is 6 months for grains and broiler production (rice, maize,
soy bean etc); 18 months for cassava; 24 months for egg production and
ruminants; 5 years for plantation crops etc
iv. Average financing size of N250,000 per ha for arable crops; N500,000 per
unit for livestock; and N1.5 million naira for plantation crops like cocoa,
cashew and oil palm.
i. Anchors/Processors/Aggregators shall sign uptake agreement with PMT.
ii. Produce off-take shall be on cash and carry basis.
iii. Contiguous nature of farms should reduce the logistics associated with aggregation.
THE ACCELERATED AGRICULTURAL DEVELOPMENT SCHEME (AADS) ELIGIBILTY:
i. Beneficiary must be a Nigerian youth with the ages of 18 to 35 years
ii. Sign an undertaking to abide by the terms of agreement of the Scheme.
Central Bank of Nigeria (CBN) shall:
i. Provide the fund.
ii. Act as Managing Agent.
iii. Be represented on the Programme Management Team.
iv. Issue and review modalities and operating guidelines from time to time.
v. Provide regulatory and supervisory oversight.
vi. In conjunction with other stakeholders, monitor, evaluate and conduct impact
assessment of the programme.
vii. Provide periodic reports on the programme.
Federal Government of Nigeria (FGN) shall:
i. Provide strategic direction for the implementation of the Scheme through the
Presidential Task Force.
ii. Enhance inter-agency collaboration to provide resource optimization and synergy.
iii. Align programme objectives to National economic growth and development.
iv. Review programme objectives and activities from time to time.
State Governments/FCT shall:
i. Express interest to participate to the Presidential Task Force and choose 2
commodities or farming enterprise where the State enjoys comparative
ii. Provide enabling environment for implementation of the scheme.
iii. Inaugurate the Project Management Team.
iv. Provide cleared and contiguous farm lands for beneficiaries under the Scheme.
v. Provide accessible road and water sources.
vi. Provide basic livestock production facilities (ONLY for States involved in
vii. Provide security for farm lands.
viii. Enrol extension officers to coordinate production and disseminate information
on best agronomic practices.
ix. Training beneficiaries on best agronomic practices and other value chain
x. Allocate 1-3 hectares of farm land or 1-3 units of livestock to beneficiaries.
xi. Provide logistics support for the effective operations of the PMT.
xii. Approve sanctions for erring input suppliers, service providers,
anchors/processors, beneficiaries, and other stakeholders under the Scheme.
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