Nigeria Incentive-Based Risk Sharing system for Agricultural Lending (NIRSAL) says it has so far facilitated lending to the tune of N66.36 billion in the last three years focusing on the entire agricultural value chain in the country.
The agency said it had also been able to pay N960 million directly on interest loans to farmers in agricultural value chain as a way of encouraging agri-business in the country.
Aliyu Abdulhameed, managing director of the agency, made the disclosure in Abuja at the ongoing sixth edition of AgrikExpo and the Nigeria Agribusiness Group Conference in Abuja.
The NIRSAL managing director, who expressed willingness of the agency to support agri-business value chain in the country, said the agency would continue to lend support to farmers in agribusiness value chain by de-risking their investments.
“The key product we give to Agricultural financiers are credit risk guarantee which is a document that provides up to 75% of the loan given to them, in case of any loss incurred to the owner of the business, by giving comfort to the banks,” he said.
He pointed out that the agency has also developed an ‘Area yield interest insurance’ which perfects and protects cash flow of the farmers through effective collaboration with the National Association of Insurance commissioners as well as other insurance companies in the country.
“The area yield interest insurance of NIRSAL assists the farmers and insures his shortfall through insurance cover. For instance, if the farmer is expecting 4 tons of rice per hectare from harvests, and later gets 3 tons.The area yield interest insurance has a way of assisting him not to feel the pains,” he said.
He also noted that the agency assists in providing technical assistance to farmers to ensure they become players in the entire agricultural value chain for wealth creation and food sufficiency.