Some Banks in Nigeria have pledged a combined US$500 million to fund agriculture and agribusiness.
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) made this disclosure recently at a media parley in Abuja.
According to NIRSAL Plc, “as a result of the success of NIRSAL Plc’s risk-sharing model, commercial banks have pledged a combined US$500 million to fund agriculture and agribusiness.”
The agency noted that its “finance facilitation efforts have generated an additional US$2.5 billion worth of economic activity through agricultural products/outputs and other value chain economic activities, created 360,000 direct jobs and positively impacted the lives of 1.8 million Nigerians”.
Furthermore, NIRSAL Plc revealed that it “has been approached by other African countries to provide support for the establishment and implementation of Risk Sharing facility models in their respective jurisdictions”.
Managing Director/CEO of NIRSAL Plc Mr. Aliyu Abdulhameed, stated that “as a guarantor, NIRSAL Plc’s support positively impacts financiers, borrowers and the nation’s economy”.
“While financiers are now able to confidently invest in profitable agribusiness ventures, agribusinesses who borrow from them can improve productivity and profitability, all of which generate much-needed local economic activity” Abdulhameed said.
He added that “the injection of finance into the Agric sector through NIRSAL Plc has resulted in broad socio-economic growth”.