NIRSAL, Stanbic IBTC earmark N50bn for agric financing

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and Stanbic IBTC Bank in a recent partnership have earmarked N50 billion for agriculture financing for the 2017/2018 dry and wet seasons.

Speaking over the weekend at the launch of the scheme, Managing Director of NIRSAL, Mr. Aliyu Abdulhameed, said it was an effort to boost agricultural productivity and modernization by facilitating increased bank lending to the sector.

He noted that the partnership will cover NIRSAL supported projects in livestock, crops, mechanisation, logistics and poultry.

The terms of the partnership, he explained, included that NIRSAL will provide credit guarantees to cover up to 75 percent of STANBIC IBTC loans to bankable agricultural projects using its $300m risk sharing facility.

According to Abdulhameed, the first phase of the scheme has been projected to create over 92,000 direct jobs, impact about 200,000 lives, boost incomes of rural farmers and complement government’s efforts to drive inclusive economic growth through agriculture.

He added that NIRSAL as a policy tool of the Central Bank, was collaborating with financial institutions such as STANBIC IBTC to drive growth in the agriculture sector as part of its institutional contribution to achieving the objectives of the economic recovery growth plan of the Buhari-led administration.

Abdulhameed stressed that the scheme has been designed not only to enable access to finance by beneficiaries but to ensure that they succeeded and paid back the loan.

On his part, Managing Director of Stanbic IBTC, Dr. Ademola Shogunle said the bank has committed an initial N10 billion for the take-off of the scheme adding that the fund would be expanded gradually as milestones are achieved.