Abia Commences Disbursement of N900m Interest-Free Agric Loan to Farmers
Abia Commences Disbursement of N900m Interest-Free Agric Loan to Farmers Search Categories Business (3) Client (4) Computing (1) Credit Score (3) Education (2) Enquiry Portal (1) Farmer (1) FCB (2) Finance (4) FirstCentral Blog (11) Loan (1) News (3) Nigeria (3) OECD (3) Office (1) Video (3) Work (1) Tags February 12, 2025 Abia Commences Disbursement of N900m Interest-Free Agric Loan to Farmers Alex Otti, the Governor of Abia State, has initiated the disbursement of over N900 million in interest-free agricultural empowerment loans to 298 Abia farmers who were trained at the CSS farm in Nasarawa State. Governor Otti, who was represented by his Chief of Staff, Caleb Ajagba, addressed the beneficiaries at Government House, Umuahia, and underscored his administration’s dedication to establishing a new prosperity pathway for the state’s citizens. He emphasized the significance of offering the requisite assistance to support them in maximizing the state’s bountiful resources. Also Read: https://firstcentralcreditbureau.com/how-to-apply-for-a-farm-loan/ The governor acknowledged that agriculture is a fundamental component of his administration’s approach to employment creation and economic development. He stated, “This initiative establishes the groundwork for a novel empowerment model that is intended to ensure that our citizens are financially self-sufficient in the long term, work independently, and contribute real value to our gross domestic output.” Governor Otti also disclosed a sequence of prospective initiatives that are designed to mitigate the obstacles encountered by Abia residents. He reaffirmed the Labour Party government’s dedication to a distinct governance approach, which has been centered on enhancing the economic and social circumstances of ordinary individuals over the past 16 months. The governor expressed confidence in the beneficiaries’ ability to effectively utilize the loans and encouraged them to prudently manage the funds. He reassured them that those who demonstrate a commitment to the initiative will receive additional funding and support. Cliff Agbaeze, the Commissioner for Agriculture, elaborated on his intention to increase the training program’s effectiveness by urging each beneficiary to train three others during his recent address. The government’s intention to integrate contemporary agricultural practices into the educational curriculum, commencing at the foundational level, was also disclosed by him. The ministry has implemented a comprehensive monitoring schedule to guarantee accountability and monitor the beneficiaries’ advancement. Chioma Onyekachi, on behalf of the beneficiaries, expressed her sincere appreciation to Governor Otti for the opportunity to participate in the CSS Farm training. She reassured the governor that they would responsibly utilize the loans and make a substantial contribution to the food security of Abia State. Share: Twitter Facebook Linkedin Email FirstCentral Writer FirstCentral Writer is a passionate blog writer who specializes in business, finance and everything FirstCentral. With a knack for storytelling and a love for clear, engaging content, FirstCentral Writer brings fresh perspectives to every post. Drop a Comment
Banks’ Credit to Private Sector Grows 33.6% YoY
Banks’ Credit to Private Sector Grows 33.6% YoY Search Categories Business (3) Client (4) Computing (1) Credit Score (3) Education (2) Enquiry Portal (1) Farmer (1) FCB (2) Finance (4) FirstCentral Blog (11) Loan (1) News (3) Nigeria (3) OECD (3) Office (1) Video (3) Work (1) Tags February 12, 2025 Banks’ Credit to Private Sector Grows 33.6% YoY Banks’ credits to the private sector, CPS, increased by 33.6% year-on-year (YoY) to N75.5 trillion in July 2024 from N56.5 trillion in the same period of 2023, suggesting a promising economic recovery. Also read: https://firstcentralcreditbureau.com/the-fg-has-increased-the-loan-amount-for-msmes-to-n5m-at-a-rate-of-9-interest/ In a given period, the CPS encompasses loans, trade credits, and other account receivables and supports that banks provide to private sector operators. The CPS is a global indicator of the banking sector’s contribution to national economic activities and the resilience of its balance sheet. David Adonri, Vice Executive Chairman and Financial Analyst at High Cap Securities Limited, expressed his satisfaction with this development, stating, “This is a positive development in the economy.” The CBN has a significant role to perform in addressing the current issue of the interest rate. “The economy is expected to experience a substantial boost as a result of the increased private sector credit, as there is a correlation between credit to the private sector and economic growth.” The primary consequence of the increased lending by banks is an increase in Gross Domestic Product (GDP). “The trend in credit to the private sector may persist if the benchmark interest rate, the Monetary Policy Rate (MPR), is reduced.” Therefore, I would prefer that the apex bank decrease the MPR in light of the progressive decrease in inflation. Concurrently, the credit breakdown of banks revealed that their credit increased by 2.8% to N73.2 trillion in the second quarter of the year, Q2’24, compared to N71.2 trillion in Q1’24. The CBN’s Money and Credit report also indicated that Nigerian banks had experienced a substantial increase in deposits during the first half of the year. According to the report, the demand deposits of banks increased from N26.7 trillion at the conclusion of December 2023 to N33.0 trillion by June 2024. Since the beginning of the year, deposits have increased steadily in banks. The total demand deposits in the first quarter of 2024, which concluded in March, increased by 8.1% to N28.9 trillion. Banks’ deposits increased by 14.3% to N33 trillion in the second quarter of 2024, which concluded in June. In the meantime, practically all banks had experienced substantial deposit growth in the past few years, which enabled the majority of them to generate new loans and advances. Share: Twitter Facebook Linkedin Email FirstCentral Writer FirstCentral Writer is a passionate blog writer who specializes in business, finance and everything FirstCentral. With a knack for storytelling and a love for clear, engaging content, FirstCentral Writer brings fresh perspectives to every post. Drop a Comment
Loan Apps: Approved Digital Lenders in Nigeria Swell to 320 in September as demands for Credits Surge
Loan Apps: Approved Digital Lenders in Nigeria Swell to 320 in September as demands for Credits Surge Search Categories Business (3) Client (4) Computing (1) Credit Score (3) Education (2) Enquiry Portal (1) Farmer (1) FCB (2) Finance (4) FirstCentral Blog (11) Loan (1) News (3) Nigeria (3) OECD (3) Office (1) Video (3) Work (1) Tags February 12, 2025 Loan Apps: Approved Digital Lenders in Nigeria Swell to 320 in September as demands for Credits Surge The number of companies that have been granted permission to offer loans to Nigerians through digital platforms, which are commonly referred to as “loan apps,” has increased from 284 in May to 320 this September. This occurred as the country’s economic hardship intensified, resulting in a growing demand for loans from lenders. The lenders have reported that Nigerians have quadrupled the number of loan applications this year. The digital loan market is currently served by 320 companies that have received approval to provide the service from either the Federal Competition and Consumer Protection Commission (FCCPC) or the Central Bank of Nigeria. Also read on: https://firstcentralcreditbureau.com/the-fg-has-increased-the-loan-amount-for-msmes-to-n5m-at-a-rate-of-9-interest/ A review of the FCCPC’s database reveals that the Commission has granted full approval to 264 digital lenders, while 42 others are operating with conditional approval. Additionally, the database comprises 14 organizations that have been authorized by the Central Bank of Nigeria (CBN). Why are more companies entering the digital lending market? The ease of registration has become the draw for many to enter the business, despite the FCCPC’s announcement that it is bringing digital lenders to register under its Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending as a way of sanitizing the space. “At present, the initial step for those in the financial sector is to engage in digital lending.” “When considering microfinance, the regulatory framework is more stringent and the licensing process is more expensive.” Mr. Gbemi Adelekan, Chairman of the Money Lenders Association, the umbrella organization of registered loan app companies in Nigeria, stated “This is the reason why many companies are entering the space.” “The entry barrier is not as high as it is for CBN-regulated financial institutions, which is why more people are coming,” he continued. Rapid increase in credit demand In addition to the ease of entry, individuals who are entering the digital lending sector are also recognizing significant opportunities due to the increased demand for fast loans among Nigerians, despite the high risk of non-payment. Adelekan asserts that a significant number of Nigerians are currently dependent on credit to ensure their survival, and loan applications are advantageous due to their ability to provide immediate loans. He observed that the demand for loans has now quadrupled since the COVID-19 pandemic, when there was a surge. “Let me illustrate with our organization, KwikPay Credit.” We would receive approximately 1,000 applications each week during the COVID-19 period, when everyone was at home, exchanging information. “However, we are currently receiving 5,000 to 6,000 applications on a weekly basis.” He stated that a significant number of individuals are interested in obtaining loans. Nevertheless, he observed that the majority of the loan applicants are not eligible for the loans due to their inadequate credit histories. He stated that 90% of the applicants typically fail the credit history aspect after passing the BVN verification. Our initial step is to determine whether an applicant has a financial history. Regrettably, the system will immediately reject 4,500 of the 5,000 applications. “The system excludes you if you have an outstanding loan that has not been paid.” Adelekan stated that individuals are unaware of the significance of their credit history. He further stated that certain lenders reduce their risk analysis in order to attract consumers by conducting solely BVN verification. He stated that this particular group of lenders provides nano loans ranging from N3,000 to N5,000, which are accompanied by high interest rates to mitigate the risks. Further attempts to address the issue of unregistered loan applications Hundreds of unregistered lenders continue to operate in the market and receive patronage from desperate borrowers, despite the increase in the number of digital leaders who have registered with the FCCPC and received approval to operate. The FCCPC has placed 88 loan apps under its watchlist as it continues to develop modalities to sanitize the digital lending space, as a consequence of their ongoing atrocities, which include defaming and harassing their customers through their contacts. Additionally, 47 loan apps have been delisted from the Google Play Store. The primary objective of the registration and certification of digital lenders in the country, as stated by Dr. Adamu Abdulahi, the Executive Commissioner of Operations at the FCCPC, is to identify the companies responsible for the apps through the Interim Regulation in order to hold them accountable for any infraction. He observed that there was no method of tracing any of the companies that operated the loan applications prior to the regulation. Abdullahi stated that the Commission is also attempting to achieve a balance between the continuous operations of the loan apps and the defaults of customers in repaying their loans. He also noted that loan apps are playing significant roles in the economy, despite the challenges. What you should be aware of The Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, were developed by the FCCPC under the leadership of its former boss, Babatunde Irukera, in collaboration with the Joint Task Force (JTF). The purpose of these documents is to encourage fair, transparent, and advantageous alternative lending opportunities for Nigerians. The registration was also required due to the alarming activities of loan apps in the country, particularly those that were illicit, which were accused of violating rights and engaging in unfair practices, among other things. Report has it that the number of registered loan applications in the country had increased to 284 as of May of this year. 36 additional companies have been approved since that time, bringing the total to 320. Share: Twitter Facebook Linkedin Email FirstCentral Writer FirstCentral Writer is a passionate blog writer who specializes in business, finance and everything FirstCentral. With a knack for storytelling and a love
