ADAS Credit Guarantee Scheme

ADAS Credit Guarantee Scheme. The ADAS Credit Guarantee Scheme (ADAS-CGS) is a key initiative designed to improve access to credit for agricultural stakeholders in Adamawa State, particularly those lacking traditional collateral.

This scheme facilitates warehouse financing for commodities like grains and livestock by providing guarantees to financial institutions, thereby securing loans for eligible agribusinesses. Participating banks disburse loans specifically for procuring and delivering commodities to designated warehouses managed by appointed Collateral Managers.

The scheme operates with a dual financing track, offering both interest-based financing through conventional banks and non-interest/Shariah-compliant financing based on Islamic finance principles like Murabaha and Salam. This dual approach caters to a wider range of participants, including faith-based enterprises.

Collateral coverage ranges from 130% to 150%, with commodities backing 100% and the Guarantee Scheme providing an additional 30% to 50%. Managed by ADAS Programme Limited and implemented through a network of agents, the ADAS-CGS aims to improve collateral-free credit access, reduce lending risks, stimulate value chain offtake, facilitate private investment, and integrate smallholder farmers into broader markets, covering a range of crops, livestock, and aquaculture.