Farmers and stakeholders in the agricultural sector may be in for more lending opportunities with Jaiz bank.
This is coming on the heels of the commitment announced by the bank’s MD/CEO, Mr. Hassan Usman who announced an initial commitment of N4 billion to agricultural loans from the bank.
This was revealed by the Managing Director of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc.), Mr. Aliyu Abdulhameed.
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.
Mr. Aliyu made this revelation via his LinkedIn account saying, ”Using our $300Million risk-sharing fund, we at NIRSAL aim to grow bank lending to agriculture from current figures to a minimum of 7% of their total lending portfolio within 10 years. We also aim to increase lending to smallholder farmers to 50% of commercial banks’ aggregate lending to agriculture/agribusiness.
”I was delighted therefore when, during a meeting with Mr. Hassan Usman, Jaiz Bank Managing Director/CEO, he informed me that 20% of the bank’s portfolio is dedicated to the Agricultural Value Chain. To elicit even more financing, I presented NIRSAL’s value proposition of delivering an optimized, de-risked agricultural commodity value chain financing model that is highly conducive for financing & investment.
”In a positive response, Mr. Usman made a baseline commitment of an initial N4Billion.