The Central Bank of Nigeria has fined Access Bank Plc the sum of N353.39m for violating the regulator’s guidelines on the Commercial Agriculture Credit Scheme.

The fine, imposed on the bank last month, was contained in the CBN’s Development Finance Department report for the month of May.

The 19-page report, dated June 2, was posted on the central bank’s website on Thursday.

The report stated, “Access Bank was fined the sum of N353.395m being sanction for infraction of the CACS guidelines during the month. Cumulatively, the total penalty charged for infractions, stood at N1.242bn from inception in 2009 to May, 2014.”

The CACS was established to finance large ticket projects along the agricultural value chain. The scheme is being administered at a single-digit rate of nine per cent to beneficiaries for a period of seven years.

State governments, including the FCT, can access a maximum of N1bn each for lending to farmers’ cooperatives or other areas of agricultural intervention in the period under review, according to the report.

The CBN report noted that no funds were released from the CACS receivable accounts during the period under review.

According to the CBN, the sum of N229.282bn has so far been released to the economy under the CACS in respect of 304 projects through 20 banks.

The amount is made up of N199.831bn from the CACS receivable account for 273 projects and N29.451bn from CACS repayment account for 31 new projects and 15 enhancements.

However, the report stated that the sum of N701.41m was released from the CACS repayment account to two participating banks for two projects in May.

According to CBN, 304 beneficiaries made up of 274 private promoters and 30 state governments, including the FCT, have been sponsored under the CACS.

The report added, “The sum of N39bn has been accessed by 30 state governments and the FCT. The sum of N2.340bn was repaid by two banks in respect of three projects during the month, bringing the total repayment to N39.888bn in respect of 74 projects. The balance on the CACS funds by end of May, 2014 was N0.169bn. The balance on the CACS repayment account as at end May, 2014 was N10.437bn.

“From inception in 2009 to date, 165,510 jobs were created through the scheme; two out of the 274 private projects are owned and managed by women. The Committee of Governors at its 343rd meeting approved the CACS exit date from 2016 to 2025.”

The CBN noted that the challenges facing the scheme included non-adherence to CACS guidelines by banks; and poor monitoring of projects by some participating banks.

Going forward, the central bank said it would improve its monitoring of the CACS projects, and carry out an impact assessment to ascertain the actual gains of the project.

Punch