CBN P-AADS Loan Application form 2024/2025 How do I apply

Nigeria is blessed with a remarkable landmass that’s excellent for farming.

Tons of experts have admitted that if the Nigerian government gave as much attention to agriculture as they give petroleum, the country would no longer have money issues and would be well respected on the international scene.

For ages, farmers and the farming sector in Nigeria seemed to have suffered lack of attention and adequate financial investment from the government.

But with programs like the CBN P-AADS Loan Application, it is beginning to seem as though the sun is starting to shine on the farming sector in Nigeria.


If you’re a Farmer in Nigeria (or know a farmer who needs funding), you should know (and spread the word) about the CBN P-AADS Loan that the Nigerian government has designed to cater for financing farming activities within the country. Let’s dive into the details of this loan.


The CBN P-AADS Loan is the Central Bank of Nigeria’s response to encouraging farming activities in Nigeria. With one of the farming problems in Nigeria being inadequate financing of farming activities in Nigeria,

the Central Bank of Nigeria has finally responded to the “lack of adequate funds” through this Loan scheme.

CBN has released the total sum of 2billion naira to other commercial banks, instructing them to award part of the money to youths in the agricultural field or interested in going into agriculture.

This intervention is because close to 400,000 youths across Nigeria have displayed genuine interest in Agricultural activities.

P-AADS is the acronym for Private Accelerated Agriculture Development Scheme, which indicates that this loan is privately funded.

Specifically, this loan is targeted at helping farmers cover expenses that arise from irrigation, land clearing, domestic commodities infrastructure support, the building of laboratory and stage facilities, etc.

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How Do You Apply ?

Applying for the CBN P-AADS loan is quite simple and old Fashioned.

Unlike other loans you might have used that require you to download an app, fill a form, and get the loan amount you need instantly, this CBN loan for young and old farmers in Nigeria goes through a Bureaucratic process.

In essence, you won’t get the loan as soon as you apply for it- you’ll have to wait a couple of days, maybe months, to get the loan. In essence, you’ll need a lot of patience to benefit from this loan. Let’s quickly run you through the application process.

  • Visit Your Bank: CBN offloaded the responsibility of handling the loan application process and dispersed it to legal, commercial banks in Nigeria. That means that you do not need to travel to CBN to apply for the loan. While the process is old-fashioned, you’ll need to go to your bank. That is, if you have an account with GT Bank, Access bank, FCMB, Zenith Bank, etc., and other commercial banks, go to those banks to commerce your P-AADS loan application.
  • Get the Form: Once you get to the bank, you could ask the security guard or a customer care representative for the risk management unit, and they’ll direct you to the unit. Once you get there, request the P-AADS loan application form. If the customer care agent o security guard at the bank says they do not have a risk management unit, ask them where you can get the application form. It is possible that the bank might not have the capacity for a separate risk management unit and might merge it with another unit.
  • Fill in Your Details: Once you get the form, promptly fill in your details correctly, as requested on the form.
  • Wait for Feedback: Submit the form as soon as you’ve completed it to the bank. You don’t need to wait at the bank for feedback, as this is where the patience kicks in. Once you’ve successfully filled the form, you’ll have to return to your daily life and wait for the bank to inform you whether your application was successful or not.
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CBN P-AADS Loan Requirements

Every loan comes with requirements. These requirements are not meant to prevent people from getting a loan.

Instead, it is supposed to help with successfully shortlisting and identifying people who genuinely need the loan and use it to do what is intended. Below are the requirements you should consider before applying for the loan.

  • You have to cultivate some or all of the commodities requested by CBN to apply for the loan. Some commodities include; Rice, Cotton, Maize, Livestock/Dairy, Oil Palm, Cassava, Tomato, Wheat, Sorghum, Poultry, Fish, Cocoa, and Other commodities CBN might update the list with. You must also have proof that confirms you’re indeed engaged in the stipulated agricultural activities.
  • You must have at least 20 hectares or more land for agricultural activities.
  • You should provide collateral which is the title of the cleared land, and other stipulated collateral that the CBN would further expose. The reason is that CBN would pay 50% of the credit risk when the participant defaults in payment.
  • You should have a good credit record.
  • You should be into agricultural activities.

CBN P-AADS Funding, Interest Rates , AND Limits

Once you pass the screening phase after application, you’ll be credited the amount of money that the government approves.

Generally, CBN would credit you the loan amount you qualify for through the Anchors Borrower’s Program (ABP).

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Although every Nigerian youth is eligible to the limit of two million naira under this loan, not everyone would get up to that.

Based on some of the eligibility factors, you might not receive two million naira, but you’ll get a substantial amount that’s enough to fund your agricultural activities.

When it comes to how long beneficiaries of this scheme can borrow the money for, there are two tenures.

For Annual crops, you’ll get a maximum of six years with six months moratorium, and farmers who grow Perennial crops have a term of ten years with a one-year Moratorium.

  • N2, 000, 000 (Two Million Naira Only). This loan credit will be repaid from the Economics of Production (EOP) for cultivating farmland.
  • Annual crops should be 6 years with a six (6) months moratorium while perennial crops should be like ten (10) years with one year moratorium.
  • there is an interest rate, please remember this and the Interest rate is 5.0% and 9% respectively

CBN P-AADS Loan Repayment

Repaying this loan is a bit easy as the CBN doesn’t expect farmers to pay every dime they owe at once as it would hurt the business.

Hence, the loan can be repaid in installment, spread over the Economics of production of the commodities you cultivate. You’ll have to make the payment through your local bank. Then, the bank would remit the payment to CBN quarterly.

What this means

The federal Government has realised the need to provide continuous support to critical sectors of the economy.

(e.g. You must have heard about the National Young Farmers Scheme, Anchors Borrowers Programme, etc.),

All this are prove that the government is committed at diversifying the economy and also halt the impact of food shortages, help boost productivity in key agriculture produce


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