The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) said it has granted ADT Russet Limited 50 per cent Credit Risk Guarantee on a facility of N1.15bn.
The risk management institution disclosed this after a tour of ADT Russet Ltd factory in Apapa.
ADT is a Cocoa Bean sourcing and exporting company in Lagos State.
NIRSAL believes that the move will boost Nigeria’s chances to explore the $67bn global cocoa market.
NIRSAL guarantee cover on bank loans ranges from 30 per cent to 75 per cent.
“By supporting ADT Russet’s operations, NIRSAL Plc is also indirectly creating a stronger market for the many cocoa farmers who supply their inventory,” the institution said.
So far, ADT Russet Ltd, a subsidiary of Arma Dei Trading Limited has leveraged NIRSAL Plc support to ship over 1,600MT.
Managing Director of NIRSAL, Aliyu Abdulhameed, said, “We are happy to yet again demonstrate our willingness and capability to support Agro-allied companies across the country to grow their businesses, engage smallholder farmers, and earn foreign exchange for the Nigerian economy.”
He noted that the agency had given similar facilities to other companies in the South- West to boost the cocoa market.
Nigeria is the world’s largest cocoa producer, the country has been missing in the large market which could boost foreign exchange earnings.
The Nigerian Export Promotion Council estimates cocoa export value in the country at just $700m in 2017.
The Managing Director of the ADT said, Charles Eteri, louded NIRSAL’s contribution to the agric sector particularly cocoa business.