BY Chidi Nwachukwu, Abuja
The Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) has entered into a N50billion agriculture financing partnership with Stanbic/IBTC Bank for the 2017/2018 dry and wet season.
This is in continuation of its efforts to boost agricultural productivity and modernization by facilitating increased bank lending to the sector.
The partnership will cover NIRSAL supported projects in livestock, crops, mechanization, logistics and poultry.
STANBIC/IBTC had committed an initial N10billion for the take-off of the scheme, an amount which is to be expanded gradually as milestones are achieved.
The first phase of the scheme is 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.
It will also lead to the cultivation of an additional 11,195 hectares of arable land, increase the National Food Output by up to 50,580MT in yield and provide N3.87billion value addition.
The managing director of NIRSAL, Mr. Aliyu Abdulhameed, and his counterpart in STANBIC/IBTC, Dr. Demola Sogunle, signed the memorandum of understanding (MoU) at an event to mark the take-off of the scheme in Abuja yesterday.
Under the terms of the partnership, NIRSAL is to provide credit guarantees to cover up to 75 per cent of STANBIC/IBTC loans to bankable agricultural projects, using its $300M Risk Sharing Facility.
Speaking about the scheme, Mr. Abdulhameed told our correspondent that the partnership was in line with NIRSAL’s mandate to attract private sector finance to agriculture.
The post NIRSAL Partners Stanbic IBTC On N50bn Agric Financing Scheme appeared first on leadership.ng.