The loan guarantee scheme is a
public-private sector initiative set up to transform the country’s
agricultural sector. It was initiated by the apex bank, the Bankers’
Committee and the Federal Ministry of Agriculture and Rural Development,
to guarantee 75 per cent loans provided by Deposit Money Banks (DPB) to
farmers as part of efforts to transform the country’s agricultural
sector.
The Head of NIRSAL Project
Implementation Office under the Development Finance Department of the
CBN, Jude Uzonwanne, who spoke on the role of NIRSAL in Abuja, told the
Minister of State for the Federal Capital Territory, Oloye Akinjide,
that the guarantee would be issued to farmers through commercial banks
and other financial institutions.
“NIRSAL would mobilize financing for Nigerian agribusiness by using credit guarantees to address the risk of default,” Mr. Uzonwanne said.
“NIRSAL is a flexible financing tool designed to change the behaviour of financial institutions.
“It covers all crops and livestock activities in Nigeria, while driving improved investment outcomes and job creation. It is also building on a legacy of previous CBN interventions in agriculture that has helped create thousands of jobs.”
“NIRSAL would mobilize financing for Nigerian agribusiness by using credit guarantees to address the risk of default,” Mr. Uzonwanne said.
“NIRSAL is a flexible financing tool designed to change the behaviour of financial institutions.
“It covers all crops and livestock activities in Nigeria, while driving improved investment outcomes and job creation. It is also building on a legacy of previous CBN interventions in agriculture that has helped create thousands of jobs.”
Mr. Uzonwanne said the programme was
designed to create access to finance to farmers by integrating
end-to-end agriculture value chains, such as input producers, farmers,
agro dealers, agro processors and industrial manufacturers with
agricultural financing value chains – loan product development, credit
distribution, loan origination, managing and pricing for risk, and loan
disbursement.
“The integration is driven by NIRSAL’s 5
pillars, particularly the Risk Sharing Pillar and the Technical
Assistance pillars, such as Risk sharing Facility, allocated ?45
billion, Insurance Facility (?4.5 billion), Technical assistance
facility (?9 billion), Agricultural bank rating scheme (?1.5 billion),
and Bank incentive me
“NIRSAL will share risks with banks
ranging from 30% to 75% of loss depending on the segment. We are
prepared to offer following terms to farmers in the States and FCT
Abuja: 75% guarantees on all input, working capital and limited living
cost loans to plant the crop, and loan duration should be about 24 – 28
months,” he said.
The Minister of State for FCT, who was
represented by the Director of Treasury in the FCT Administration,
Ibrahim Bomai, said that NIRSAL is cardinal to the success of the
Federal Government’s Agricultural Transformational Agenda (ATA) as it
was established to address the grey areas inhibiting agricultural growth
in the country.
“NIRSAL seeks to address all the technical, administrative and financial needs of the farmers along the selected agricultural value chain commodities in which the country has comparative advantage,” said the minister said Akinjide.
“NIRSAL seeks to address all the technical, administrative and financial needs of the farmers along the selected agricultural value chain commodities in which the country has comparative advantage,” said the minister said Akinjide.
He said the six Area Councils of the FCT
have already been directed to identify and key into the value chain
commodities to be promoted in their respective area of jurisdiction,
adding that the Authority has commenced the implementation of the Growth
Enhancement Scheme of Federal Ministry of Agriculture & Rural
Development in order to empower the farmers in the territory.
The United Bank of Africa (UBA) has been saddled with the responsibility of registering interested applicants for the loan.What is this product about?
The Product is designed to offer credit facilities to farmers under the Agriculture Loan Scheme initiative of the Federal Government of Nigeria.
Who are the target markets?
Individuals in Paid Employment, Micro, Small farmers, Medium and Large scale farmers, Corporate Organisations, NGOs, Govt and its agencies engaged in Crop production/cultivation, Poultry, Fishery, Animal Husbandry, Plantation Agriculture, Agro processing, farm machinery and hire services..
Product Coverage
- Agro Processing
- Out-Growers Scheme
- Livestock Farming
- Cultivation of Arable crops
- Storage facilities and maintenance
- Tractorisation and Mechanisation Schemes
- Plantation Agriculture, including tree crops replacement scheme
What are the Benefits?
- Increased food production and national security
- Poverty Reduction
- Employment generation and Wealth creation
- Empowerment of farmers and rural households through credits and savings
- Strengthen the governance structure of co-operatives
- Contribute to National Economic growth.
- Industrial development .
What are the Requirements?
- Must be practicing farmer or agro-allied entrepreneur
- Must have been in account relationship with UBA for minimum of 3 months.
- Members must be between the ages of 18 and 60years
- Must be a member of All Farmers Association of Nigeria(AFAN) and recommended by the same the same association
- Viable proposal
- Positive CRMS report .
Who can apply?
Individuals in Paid Employment, Micro, Small farmers, Medium and Large scale farmers, NGOs, Govt and its agencies, Corporate Organizations
How are customer’s applications going to be treated? Individuals in Paid Employment, Micro, Small farmers, Medium and Large scale farmers, NGOs, Govt and its agencies, Corporate Organizations
Visit the nearest UBA Business office on or before March 31st 2016 to get the application form for free and apply.
Goodluck.
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