Expert Calls for Improved Loans to Drive Nigeria’s Agro-Commodity Trade

Gilbert Ekugbe

One of the leading agricultural trading companies in Africa, Sourcing and Produce (SP), has called on the federal government to support exporters in the non-oil export sector with loans that could drive Nigeria’s agro commodity trade.

The Chief Executive Officer of SP, Mr. Lanre Awojoodu, in a statement said the federal government must support Nigerian exporters with loans to encourage them in the regulated global commodity platform.

Awojoodu said that export companies need capital which would enable them to compete globally.

According to him, it is a crucial time for the government to make funds available for export companies for agricultural produce export.

He suggested that an export pre-financing scheme would be the best option, saying that it would enable the government to identify serious exporters, who have a track record of export businesses.

Awojoodu explained: “I would suggest a Non-Oil Export (NXP) pre-financing scheme, this will help the government and exporters. Government makes available affordable loans for exporters who have a track record of NXP’s. Let us say a situation where you can get a loan of 50-70 per cent of your NXP value of the previous year in a loan. If you default, then you are blacklisted. Capital needs to be cheaper to be able to compete on prices globally. A framework along this line will be positive. The Government will see more exporters using Importer and Exporter FX window.”

He however stated that his company has been working to unlock the potential of the agricultural sector to contribute to sustainable and inclusive growth for Africa, saying that his company had exported agricultural commodities to 27 countries globally from Nigeria.

He revealed that the company has established its footprints across African markets, especially with the incorporation of Sourcing and Produce Tanzania Limited.

Awojoodu noted that the agricultural sector had limitless opportunities that could be explored in the export market.

He urged investors to take advantage of this unique opportunity by doing business with credible export organisations, noting that this would help to meet growing demands for agricultural produce and earn better returns on their investments.

He stated that it was gratifying to note that despite the limited access to investment capital which has further negatively impacted agricultural export growth, the company was defying all the odds to make agriculture produce available to its customers in several parts of the world.