Post by Trade facilitator on May 16, 2022 13:26:16 GMT 1
NIRSAL Facilitates Over N146 Billion Agricultural Business In Nigeria
- The company has recorded less than 1% in non-performing loans (NPL) for projects guaranteed by NIRSAL.
The Managing Director of Nigeria Incentive-Based Risk Management System for Agricultural Lending (NIRSAL)Plc stated that the outfit has facilitated over N146 billion into the agricultural sector and related businesses.
The Managing Director, Mr. Aliyu Abdulhameed disclosed this when he was addressing the Press in Abuja Nigeria recently.
According to him, " When we say that NIRSAL Plc has facilitated the flow of over N146 billion into the agricultural commodity value chains from commercial banks, we mean that we have brokered deals whose value add up to that figure.
"Banks, very conservative with depositors’ funds, have long shied away from lending to agriculture because of their high perception of risks.
"Therefore, NIRSAL Plc necessarily create conditions that influence a change in perception under a purely commercial logic, we refer to it as fixing value chains".
The MD said that the unprecedented achievement was made possible in various sub-sectors of Agriculture including crop production, commodities processing, animal husbandry, transportation and other value chain segments of the sector by the dedication of the management and staff of the establishment.
Interestingly and quite encouraging, the NIRSAL boss also disclosed that the company has recorded less than 1% in non-performing loans (NPL) for projects guaranteed by NIRSAL.
This is real good news coming from the Nigerian agricultural sector.
The highly-elated NIRSAL boss said that the expertise with which his organization has carried out its mandate resulted in minimal cases of loan beneficiaries’ defaults.
According to him, "The Credit Risk Guarantee (CRG) tool, which we deploy to facilitate agricultural lending comes in the form of a piece of paper. It is only when a project fails and put a lender's money in jeopardy that the CRG tool begins to take the shape of money. Even then we have witnessed less than 1% of such scenarios in our entire existence".
"We spend a lot of our time and resources to make sure that everybody we guarantee is risk-managed. Everything that can delay that project and make it lose money, whether it is a human character, whether it is a biological or physical, whatever it is; we try to risk manage.
"We procure, we support, and we make sure every project we support is successful; the reason being it is in our own self-interest".
The MD explained that his organization followed each project closely from the day a participating bank released funds to the beneficiary to ensure its success.
"When banks lend, projects succeed and borrowers pay back, our job is done. We at NIRSAL PLC wake up every morning and go to work for the sole purpose of triggering and sustaining this flow," he said.
Engaging the insurance industry, the MD said added a great value to the work of the organization, as according to him NIRSAL got insurance companies to create unique products for each segment of the value chain that speaks to their risk.
He said that consequent upon this, every segment of the agricultural sector has been captured in the design of specific insurance product which has made it attractive to Deposit Money Banks (DMBs).
What really is NIRSAL and what does it stand for in the Nigerian agricultural value chain?
The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) was launched in 2011 and incorporated in 2013 by the Central Bank of Nigeria (CBN) as a dynamic, holistic USD $500 million public-private initiative to catalyze the flow of Finance and Investments into fixed agricultural value chains.
Prior to the establishment of this outfit, the agricultural sector in Nigeria has faced a very difficult time in financing due to the inability of the regular financial Institutions to properly address the financing needs of the agricultural value chain of the economy.
The sector has always been described as high risk due to the regular failure of the agricultural sector in meeting up with the repayment of loans collected from the banks.
We are going to continue to bring to the notice of our members the works of this great financial institution in Nigeria so that every member will benefit from its existence immensely.
Our company is one of the best companies in Agro-Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
- The company has recorded less than 1% in non-performing loans (NPL) for projects guaranteed by NIRSAL.
The Managing Director of Nigeria Incentive-Based Risk Management System for Agricultural Lending (NIRSAL)Plc stated that the outfit has facilitated over N146 billion into the agricultural sector and related businesses.
The Managing Director, Mr. Aliyu Abdulhameed disclosed this when he was addressing the Press in Abuja Nigeria recently.
According to him, " When we say that NIRSAL Plc has facilitated the flow of over N146 billion into the agricultural commodity value chains from commercial banks, we mean that we have brokered deals whose value add up to that figure.
"Banks, very conservative with depositors’ funds, have long shied away from lending to agriculture because of their high perception of risks.
"Therefore, NIRSAL Plc necessarily create conditions that influence a change in perception under a purely commercial logic, we refer to it as fixing value chains".
The MD said that the unprecedented achievement was made possible in various sub-sectors of Agriculture including crop production, commodities processing, animal husbandry, transportation and other value chain segments of the sector by the dedication of the management and staff of the establishment.
Interestingly and quite encouraging, the NIRSAL boss also disclosed that the company has recorded less than 1% in non-performing loans (NPL) for projects guaranteed by NIRSAL.
This is real good news coming from the Nigerian agricultural sector.
The highly-elated NIRSAL boss said that the expertise with which his organization has carried out its mandate resulted in minimal cases of loan beneficiaries’ defaults.
According to him, "The Credit Risk Guarantee (CRG) tool, which we deploy to facilitate agricultural lending comes in the form of a piece of paper. It is only when a project fails and put a lender's money in jeopardy that the CRG tool begins to take the shape of money. Even then we have witnessed less than 1% of such scenarios in our entire existence".
"We spend a lot of our time and resources to make sure that everybody we guarantee is risk-managed. Everything that can delay that project and make it lose money, whether it is a human character, whether it is a biological or physical, whatever it is; we try to risk manage.
"We procure, we support, and we make sure every project we support is successful; the reason being it is in our own self-interest".
The MD explained that his organization followed each project closely from the day a participating bank released funds to the beneficiary to ensure its success.
"When banks lend, projects succeed and borrowers pay back, our job is done. We at NIRSAL PLC wake up every morning and go to work for the sole purpose of triggering and sustaining this flow," he said.
Engaging the insurance industry, the MD said added a great value to the work of the organization, as according to him NIRSAL got insurance companies to create unique products for each segment of the value chain that speaks to their risk.
He said that consequent upon this, every segment of the agricultural sector has been captured in the design of specific insurance product which has made it attractive to Deposit Money Banks (DMBs).
What really is NIRSAL and what does it stand for in the Nigerian agricultural value chain?
The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) was launched in 2011 and incorporated in 2013 by the Central Bank of Nigeria (CBN) as a dynamic, holistic USD $500 million public-private initiative to catalyze the flow of Finance and Investments into fixed agricultural value chains.
Prior to the establishment of this outfit, the agricultural sector in Nigeria has faced a very difficult time in financing due to the inability of the regular financial Institutions to properly address the financing needs of the agricultural value chain of the economy.
The sector has always been described as high risk due to the regular failure of the agricultural sector in meeting up with the repayment of loans collected from the banks.
We are going to continue to bring to the notice of our members the works of this great financial institution in Nigeria so that every member will benefit from its existence immensely.
Our company is one of the best companies in Agro-Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
