The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending Plc has secured N231.8m financing from Union Bank and Sterling Bank to boost the working capital of Cross River State based Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited.
NIRSAL said that the financing was accelerated by the issuance of a 50 per cent Credit Risk Guarantee (CRG) and 20 per cent Interest Drawback (IDB).
The statement follows the official launch of the Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited projects in Akpabuyo Local Government Area of Cross River State.
The subsidiary of the Central Bank of Nigeria said it secured N81.8m and N150m from Union Bank Plc and Sterling Bank Plc respectively.
Gbagolo Integrated Farms Limited, a livestock producer, would use its N81.8m loan to finance the purchase of 25,000 Point of lay birds, 25,000 capacity battery cages and feeding compliments.
For TOAJ Nigeria Ltd, the N150m Export/Trade Finance facility would be channeled towards the sourcing and purchase of cocoa for export, NIRSAL said.
The statement revealed the rates for the Sterling Bank Plc’s N150m loan to TOAJ Nigeria Ltd is at 10 per cent.
NIRSAL said the funds would create a positive knock-on effect for players along each segment of both value chains and the agribusinesses’ host communities.
The lender said the purchase of 25,000 Point of Lay birds by Gbagolo Integrated Farms Limited will impact poultry feeds sellers and other inputs suppliers in the pre-upstream Value Chain segment; producers/sellers of Point of Lay birds in the upstream segment, and consumers of Eggs and Spent Layers in the downstream segment.
TOAJ Nigeria’s facility would “support the thousands of farmers who supply its inventory by providing them with a secure, sustainable, and guaranteed offtake market.
“The export of cocoa will increase Nigeria’s stake in the global cocoa market and boost the country’s foreign exchange earnings,” NIRSAL added.
Aliyu Abdulhameed, NIRSAL Plc Managing Director/CEO, believes the project would fast track its vision of “transforming the economy, delivering inclusive growth and positively impacting the lives of Nigerians.”
“As a guarantor, NIRSAL Plc intervention positively impacts both the lender and the borrower, as well as the overall economy, implying that the lender invests safely and earns competitive returns; 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,” the statement added.