By Tony Obiechina
The Central Bank of Nigeria (CBN) has released a total of N615.43 billion to participating banks under the Commercial Agriculture Credit Scheme (CACS) as at August 2018 for disbursement to farmers since the inception of the scheme.
The fund was for a total 568 projects. In addition, a total of N499.22 million was guaranteed to 4,172 farmers under the Agricultural Credit Guarantee Scheme (ACGS) in August 2018.
The amount represented a respective increase of 32.9 per cent and 7.8 per cent above the levels at the end of July, 2018 and the corresponding period of 2017.
The Apex Bank disclosed this in its monthly report for August 2018.
Sub-sectoral analysis showed that food crop obtained the largest share of N318.50 million (63.8 per cent), guaranteed to 3,345 beneficiaries; livestock got N63.35 million (12.7 per cent), guaranteed to 242 beneficiaries; fisheries sub-sector received N62.92 million (12.6 per cent), guaranteed to 272 beneficiaries; cash crop got N40.54 million (8.12 per cent), guaranteed to 245 beneficiaries. Others received N11.63 million (2.3 per cent), guaranteed to 52 beneficiaries, while the mixed crops sub-sector got N2.30 million (0.5 per cent), guaranteed to 16 beneficiaries.
Analysis showed that 29 states and the Federal Capital Territory benefited from the scheme. The highest and lowest sums of N74.2 million (14.9 per cent) and N0.4 million (0.1 per cent) were guaranteed to Edo and Bayelsa States, respectively.
Meanwhile, Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at 1.85 mbd or 57.4 million barrels (mb) in the review month.
This indicated an increase of 0.03 mbd or 1.7 per cent, compared with 1.82 mbd or 54.6 million barrels (mb) produced in the preceding month. Crude oil export was estimated at 1.40 mbd or 43.4 mb, representing an increase of 2.2 per cent, compared with 1.37 mbd recorded in July, 2018.
The development was attributed to the repairs and reopening of major oil installations in the Niger Delta region. The allocation of crude oil for domestic consumption was 0.45 mbd or 13.95 mb in the review period.
The average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API), fell to US$73.70/b in August, 2018, representing a 2.6 per cent decline below the US$75.70/b recorded in July, 2018.
The fall in oil price was attributed, largely to the rising oil supply from some OPEC and non-OPEC countries, most notably, Saudi Arabia, Nigeria and Russia. The UK Brent at US$72.03/b, WTI at US$ 51.82 /b, the Forcados at US$73.75/b, exhibited similar trends.
The OPEC basket of fifteen selected crude streams stood at US$72.23/b in August, 2018. This represented a 1.5 per cent decline, below the US$73.30/b recorded in the preceding month, but a 45.6 per cent increase, compared with US$49.60/b recorded in the corresponding period of 2017.
The report also put the total estimated statutory allocations to the state governments in the review month at N248.72 billion. This was lower than the 2018 budget estimate of N354.04 billion by 29.8 per cent. It, however, exceeded the July, 2018 receipt of N222.19 billion by 11.9 per cent.
Receipt from the federation account was N210.41 billion or 84.6 per cent of the total statutory allocations. This was 28 per cent below the monthly budget estimate of N292.28 billion.
Similarly, the allocation from the VAT Pool Account at N38.31 billion or 15.4 per cent of the total, fell below the monthly budget estimate of N61.76 billion by 38.0 per cent. “Allocation to local governments from the Federation and VAT Pool Accounts in the month of August 2018 amounted to N146.46 billion.
This represented a shortfall of 25.4 per cent relative to the 2018 monthly budget estimate of N196.25 billion, but was 5.0 per cent above the receipts in the preceding month. “Allocation from the federation account amounted to N119.65 billion or 81.7 per cent of the total. The amount was 21.8 per cent below the monthly budget estimate of N153.01 billion.
“Similarly, the share from the VAT Pool Account stood at N26.82 billion or 18.3 per cent of the total. This was below the monthly budget estimate of N43.23 billion by 38.0 per cent,” the report added.