The Nigerian Incentive-Based Risk Sharing System For Agricultural Lending (NIRSAL) has disclosed that the newly birthed Farm Agro Geo-Cooperative (F-AGC) Agribusiness Solution Services, will provide funds traceability and improve agricultural productivity.
The Managing Director for NIRSAL, Aliyu Abdulhameed, made this known in Abuja while speaking with journalists that the new innovation is a fee-based, technological expertise that is set to revolutionize the agricultural value chain sector.
NIRSAL is a Non-Bank Financial Institution owned by the Central Bank of Nigeria (CBN) established to de-risk agribusiness-related credit, fixing agricultural value chains, building long-term capacity, and institutionalizing incentives for agricultural lending.
NIRSAL Empowers 2,872 Farmers, 475 Women in South-South Region
It was established in collaboration with the Federal Ministry of Agriculture and Nigerian Bankers’ Committee in 2013 with five (5) strategic pillars of risk sharing, insurance, technical assistance, incentive mechanism and rating.
The NIRSAL boss disclosed that the agency’s job can only be said to be complete when banks lend, projects succeed, and borrowers pay back, adding that the agency through its operations has facilitated the flow of over N146billion into agricultural commodity value chains from commercial banks.
NIRSAL Partners German Agribusiness Alliance on Agric Development
Abdulhameed explained that conservative nature of commercial banks to depositor’s money leads them to withdraw from lending to agriculture because of their high perception of risks, and that NIRSAL is working to create conditions that influence a change in perception under a purely commercial logic refer to as fixing value chains.
“When we say that NIRSAL Plc has facilitated the flow of over N146billion into agricultural commodity value chains from commercial banks, we mean that we have brokered deals whose value add up to that figure. We at NIRSAL Plc wake up every morning and go to work for the sole purpose of triggering and sustaining this flow. Abdulhameed said
