The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) says it has provided Agro Traders Ltd., a Cocoa processing company in Ondo state, fifty percent credit risk guarantee worth N2 billion for working capital facility to export 22,000 metric tonnes of Cocoa beans.
The Head, Corporate Communications of NIRSAL, Anne Ihugba who made this known in a statement on Thursday in Abuja, the nation’s capital also disclosed that the Nigerian Export-Import Bank (NEXIM) and United Bank for Africa (UBA) would be financing the purchase, storage, processing and export of the cocoa beans.
She said that the business would also supports thousands of smallholder cocoa farmers who supply agro traders with a guaranteed off take market for their produce each year.
She recalled that in 2018, NIRSAL signed a master agreement with NEXIM Bank for such opportunities in the Agricultural Value Chain adding that NIRSAL would continue to facilitate the flow of finance and investments into fixed agricultural value chains, empowerment of smallholder farmers and building long term capacities amongst value chain actors.
“While proposing similar collaborations with specific development finance institutions that have mutual objectives, NIRSAL is wooing all commercial banks to open up their balance sheets to agriculture.
“The call is made with the assurance that the NIRSAL CRG will secure substantial parts of bank loans to agriculture and that its comprehensive risk management framework will forestall defaults.
“It is a call that banks like UBA are heeding,’’ she stated.