Economy
NIRSAL facilitates over N73bn into Agro processing industry-MD
Nigerian Ince
The Nigerian Incentive Based Risk Sharing System for Agricultural Loans (NIRSAL Plc) has facilitated the flow of over ₦73 billion into Nigeria’s agricultural processing industry from various sources.
NIRSAL Director General Aliyu Abdulhameed
NIRSAL Director General Aliyu Abdulhameed revealed this at a press session in Abuja.
He said that these sources include money deposit banks, development fiers, private equity investment firms and other official institutions.
Nigerian Agricultural Value Chain
“This is to carry out our mandate to create a stronger link between the Nigerian Agricultural Value Chain (AVC) segments and the subsequent link of AVC with commercial bank fictions,” he said.
NIRSAL Plc
He said NIRSAL Plc’s strategic support to Agro Processors, which operates within AVC’s midstream segment, creates a profit-driven ecosystem where farmers in the AVC upstream segment have a trusted market in the form of Agro Processors who buy the farmers products.
NIRSAL Plc
“NIRSAL Plc’s support comes at a time when developing economies are increasingly shifting from producing only raw materials to producing and adding value to increase economic activity, drive foreign exchange earnings and widespread social development.
NIRSAL Plc
” Other beneficiaries of NIRSAL Plc’s fice facilitation include pre-upstream, upstream and downstream AVC operators involved in production and input supply, mechanization service provision, primary production and logistics.
Federal Government
“This feat, which has contributed remarkably to the Federal Government‘s agricultural promotion campaign, was achieved through NIRSAL Plc’s effective deployment of its Credit Risk Guarantee (CRG) instrument,” he said.
NIRSAL Plc
Meanwhile, he explained that NIRSAL CRG is the main product of NIRSAL Plc which is used to share credit risks related to agribusiness with commercial banks and fiers by 75 percent.
NIRSAL Plc
” possible losses in a credit transaction, NIRSAL Plc has increased its confidence to lend to players in the Agric sector, a sector once widely regarded as a no-go area in fice circles.
NIRSAL CRG
Backed by CRG, farmer and agribusiness groups that prior to the introduction of NIRSAL CRG had difficulty obtaining loan approval from commercial banks, now enjoy smoother approval processes for the loans they need to expand their operations, increase their profits and improve their livelihoods. .
NIRSAL Plc
” To further support Nigerian farmers and agribusinesses, NIRSAL Plc, through its Interest Repayment Scheme (IDB), goes the extra mile to reward diligent borrower behavior through discretionary repayments of up to 40 percent. percent of interest paid on agribusiness supported by NIRSAL CRG. loans
NIRSAL Plc
“To date, NIRSAL Plc has paid more than £1.64bn, the effective interest rate for borrowers with good credit history,” he said.
NIRSAL Plc
According to him, the injection of ficia into the agricultural sector through NIRSAL Plc has resulted in extensive socio-economic growth.
NIRSAL CRG
“Agribusiness owners have been able to expand their operations and increase their staff strength, with NIRSAL CRG grantees witnessing a 20-60 percent increase in capacity utilization, productivity, the number of markets served and the value of sales,” he said.
NIRSAL Plc
NIRSAL Plc’s latest achievement, he said, also coincides with the development of Nigeria’s Special Agro-Industrial Processing Zones (SAPZ) Program across the country to which NIRSAL Plc is offering its support.
NIRSAL Plc
The head of NIRSAL also made it known that, in accordance with NIRSAL Plc’s office facilitation mandate, SAPZ would mobilize private sector investment in targeted areas to improve productivity and integrate commodity production, processing and marketing. agricultural.
