NIRSAL unveils N232m credit facility for poultry, cocoa farmers in Cross River

[From ANIEKAN ANIEKAN, Calabar]

Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) has unveiled  a N232 million credit facility for poultry and cocoa farmers in Cross River State.

The farmers are the Gbagolo Integrated Farms Limited – a livestock producer and TOAJ Nigeria Limited who are cocoa dealers.

NIRSAL Plc facilitated the approval and disbursement of N81.8 million and N150 million from Union Bank Plc and Sterling Bank Plc respectively.

Gbagolo Integrated Farms Limited will use its N81.8 million Term Loan to finance the purchase of 25,000 Point of lay birds, 25,000 capacity battery cages and feeding compliments while TOAJ Nigeria Limited will channel its N150 million Export/Trade Finance facility towards the sourcing and purchase of cocoa for export.

  As part of the deal, NIRSAL issued a 50% Credit Risk Guarantee (CRG) and 20% Interest Drawback (IDB) on the respective loans of Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited.

Speaking during a ceremony to launch the facility,  Aliyu Abdulhameed, NIRSAL Plc’s Managing Director/CEO, said both projects are testaments of NIRSAL Plc’s bid to “transforming the economy, delivering inclusive growth and positively impacting the lives of Nigerians”.

He said “as a guarantor, NIRSAL Plc’s intervention positively impacts both the lender and the borrower, as well as the overall economy.

 “The lender invests safely and earns competitive returns; the borrower’s capacity utilization and productivity is increased, and the economy reaps the benefits of the backward integration occasioned by increased local production at the expense of importation of essential goods”.

He urged all agricultural value chain stakeholders in the South-South region and the entire country to leverage NIRSAL’s Credit Risk Guarantee.

On his part, Mr. Peter Akpaudoh, Union Bank Plc’s Area Business Executive,  the lenders to Gbagolo stressed that besides the facility, NIRSAL PLC is also offering technical assistance and round-the-clock project monitoring.

 Mr. Uchenna Agbowo, Business Executive, Commercial, South-East Sterling Bank Plc, financiers of TOAJ Nigeria Limited, on his part said Sterling Bank has the highest loan book for agriculture amongst commercial banks in Nigeria.

In his speech, the CEO of Gbagolo Integrated Farms Limited revealed that it would have been difficult to service the loan they received from Union Bank if not for NIRSAL’s Interest Drawback (IDB) scheme.

For TOAJ Nigeria Limited, Mr. Taiwo Sunday said NIRSAL’s support has helped the company to acquire a 5,000 MT-capacity warehouse in Osogbo, the Osun State capital.

Meanwhile, NIRSAL’s discretionary Interest Drawback (IDB) scheme is active on both facilities for the benefit of Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited.

The IDB is an interest rebate scheme offered to borrowers to reduce their cost of funds. It is offered in quarterly cycles to borrowers in good standing.

Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited are among hundreds of agribusinesses that have been supported by NIRSAL Plc to boost their operations.

Only weeks ago, NIRSAL Plc supported ADT Russet Ltd in Lagos with a 50% credit guarantee on a N1.15 billion facility to source and export cocoa beans.

With these projects, NIRSAL Plc has now facilitated over N128 billion for agriculture and agribusiness across the country since its inception.

This translates to the creation of jobs, driving the growth of rural economies, and positively impacting Nigerian lives.