400,000 agribusiness entrepreneurs in Nigeria benefit from NIRSAL scheme
No less than 400,000 jobs have been created in different segments of the agricultural value chain by the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
The Details: This feat was made possible via the provision of N101 billion by banks, according to reports from The Nation.
While giving a speech on the sidelines of the National Project Management Conference, NIRSAL Managing Director, Aliyu Abdulhameed noted that the money was utilised in catering for 693 agricultural projects.
He added that an initiative tagged “Area Yield Index Insurance Products” had insured 37,399 farmers against loss of N6.5 billion in revenue.
Abdulhameed likened all of these successes to sound project management techniques and cost-effective management.
Reacting to the development, Programme Director, National Project Management Conference, Mr Taopheek Babayeju, explained the importance of agriculture.
He said, “Agriculture is a tool that the developed nations and successful organisations used to achieve developmental and business results.”
He also noted that the decision to depend on Agriculture would not come except it is desired and followed through.
“The change that we desire as a nation will not come from government but from ordinary people by doing our own little bit to bring about the change we want to see.”
In a recent Nairametrics report, NIRSAL unveiled its new national Microfinance Bank (MFB) in February 2019.
It planned to reach about 400,000 Small and Medium Enterprises (SMEs) in its first two years based on its presence in all 774 Local Government Areas of the country.
Published: November 13, 2019
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc.) is a US$500million Non-Bank Financial Institution wholly-owned by the Central Bank of Nigeria (CBN) created to Redefine, Dimension, Measure, Re-Price and Share agribusiness-related credit risks in Nigeria.
Established in collaboration with the Federal Ministry of Agriculture and Rural Development (FMARD) and Nigerian Bankers’ Committee in 2013, NIRSAL’s mandate is to stimulate the flow of affordable finance and investments into the agricultural sector by de-risking the agribusiness finance value chain, fixing agricultural value chains, building long-term capacity, and institutionalizing incentives for agricultural lending through its five (5) strategic pillars, namely: Risk Sharing, Insurance, Technical Assistance, Incentives and Rating.
NIRSAL’S FIVE PILLARS
Risk Sharing – $300milion Share credit risks with providers of Finance and Investments (up to 75% loss incurred
Insurance – $30milion Develop innovative Insurance products to beneficiaries
Technical Assistance – $60milion Build capacity of financial institutions and agricultural value chain players; Fixing the broken AVC
Rating – $10milion Rate lenders and Value Chain actors according to their effectiveness
Incentive Mechanism – $100milion Reward value-added performance by AVC actors and lenders
See what NIRSAL is up to by clicking HERE for more information.
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