NIRSAL Secures N232m to Boost Poultry, Cocoa Production in C’River
Peter Uzoho
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc has facilitated the approval and disbursement of N81.8 million and N150 million from Union Bank Plc and Sterling Bank Plc respectively to two agri firms to boost poultry and cocoa production and export in Cross River State.
The funds represent 50 per cent Credit Risk Guarantee (CRG) and 20 per cent Interest Drawback (IDB) by NIRSAL on the respective loans of Gbagolo Integrated Farms Limited -a livestock producer and TOAJ Nigeria Limited – a cocoa dealer.
NIRSAL leveraged on its CRG, an instrument it utilizes to share agribusiness risks with financiers to make the capitals available to the two firms, a boost expected to generate significant gains for the local and national economies through poultry and cocoa production and export.
While Gbagolo Integrated Farms, according to a statement, 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, TOAJ will channel its N150 million Export/Trade Finance facility towards the sourcing and purchase of cocoa for export.
The injection of these finances into the poultry and cocoa value chains in Cross River State was projected to create a positive knock-on effect for players along each segment of both value chains and the agribusinesses’ host communities at large.
Specifically, the purchase of 25,000 Point of Lay birds by Gbagolo Integrated Farms Limited was planned to impact poultry feeds sellers; and other inputs suppliers in the pre-upstream value chain segment.
It was also projected to impact producers/sellers of point of lay birds in the upstream segment, and consumers of eggs and spent layers in the downstream segment.
On the other hand, TOAJ Nigeria Limited’s facility was aimed at supporting thousands of farmers who supply its inventory by providing them with a secure, sustainable, and guaranteed
offtake market.
Furthermore, the export of cocoa will increase Nigeria’s stake in the
global cocoa market and boost the country’s foreign exchange earnings.
Speaking during the official launch of the Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited projects in Akpabuyo Local Government Area of Cross River
State, the Managing Director of NIRSAL, Mr. Aliyu Abdulhameed, said that both projects were testaments to the fact that the organisation in its bid to realize its vision of “transforming the economy, delivering inclusive growth and positively impacting
the lives of Nigerians”, supports all sizes of businesses, whether small, medium or large across the length and breadth of the country.
Abdulhameed added that, as a guarantor, NIRSAL Plc’s intervention positively impacted both the lender and the borrower, as well as the overall economy, implying that the lender invests safely and earns competitive returns.
According to him, 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 CRG as the collateral required for getting commercial bank financing for their agribusinesses, no matter their size or location.
The Area Business Executive, Union Bank Plc, Mr. Peter Akpaudoh, stressed the value in the suite of NIRSAL’s value offerings, adding that beyond the credit risk guarantee provided to Gbagolo Farms, NIRSAL was also offering technical assistance and round-the-clock project monitoring, a
package, he noted, really makes lending to agriculture and agribusiness easy.
Indeed, NIRSAL’s value offerings cut across value chains and value chain segments. While credit guarantees, technical assistance, and project monitoring sweeten
lending to businesses in the midstream segment of commodity value chains, the innovations and structuring introduced by NIRSAL in the upstream segment also impact the success of projects all through the value chain.
“Hence, for banks and
other commercial lenders, the incentives are too good to resist,” he said.
Also, the Business Executive, Commercial, South-
east, Sterling Bank, financiers of TOAJ Nigeria, Mr. Uchenna Agbawo, said that, at 10 per cent, the bank had the highest loan book for agriculture amongst commercial banks in Nigeria.
He stated that the bank had been enjoying NIRSAL’s support and would continue to count on it for the safety of their agribusiness investments.
In his remarks, Chief Executive Officer 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 IDB scheme.
Managing Director of TOAJ Nigeria Limited, Mr. Taiwo Sunday, said the company’s success stories were equally manifold, adding that NIRSAL’s support has helped the company to acquire a 5,000 metric tonnes capacity warehouse in Osogbo, Osun State.
