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NIRSAL Secures Fresh N4.5bn From Three Banks for Farmers

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Agric
  • NIRSAL Secures Fresh N4.5bn From Three Banks for Farmers

The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending has secured a total of N4.5bn from four Deposit Money Banks for the cultivation of maize and soybeans in three states.

The banks are Stanbic IBTC with the sum of N2bn; Sterling Bank Plc, N1.5bn; and Union Bank Plc, N1bn.

The funding is a fallout of two-day stakeholders’ meeting, which was attended by key actors in the maize and soybean value chains, banks and financial institutions, value chain support actors and other stakeholders.

The states where farmers will benefit from the funding are Niger, Ekiti and Benue.

The Managing Director, NIRSAL, Aliyu Abdulhameed, who gave the figure shortly after the meeting, which was held at the headquarters of NIRSAL in Abuja, said that 3,750 farmers would be supported across the three states.

He said 107.5 metric tonnes of seeds worth about N65.5m would be supplied by Seed companies in Nigeria.

He added that under the arrangement, 2,062 metric tonnes of fertilizer worth about N290m would be made available by the fertilizer companies, adding that 33,250 litres of crop protection products worth N54.6m would be committed to the project.

The NIRSAL boss explained that 8,750 metric tonnes of maize with a market value of N744m and 2,000 metric tonnes of soybean worth N208m would be produced and off taken under this pilot phase.

He said with commitments from various off-takers, the revenue of N425, 000 and N2.26m would be generated by each farmer under this arrangement for maize and soybean respectively.

In terms of economic benefit to the country, Abdulhameed said that the pilot scheme would save the country about N1bn through import substitution.

He said, “This is in no way a small feat as the ripple effects on economic growth, employment and standard of living would be immense.

“This is the type of positive impact that NIRSAL was established to create, and we are determined to make it happen.

“NIRSAL will deploy its credit risk guarantees on the financing tickets generated to provide comfort to financiers for loan disbursement.

“We will also deploy other robust risk management instruments including the Area Yield Index Insurance to safeguard yields at harvest, our boots-on-ground project monitoring, reporting and remediation Office personnel in Ekiti, Niger and Benue states and other risk management instruments to guarantee adequate returns on investment.”

He said the NIRSAL team would be in touch with all key stakeholders to ensure requirements are duly captured and interests fairly represented in the agreements and contracts for implementation.

On the need to have a price hedging structure that would give comfort to all stakeholders, he said NIRSAL was in discussion with relevant institutions such as the Commodity Exchange, National Collateral Registry and insurance companies on how to craft the best option.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

IMF to Review Nigeria’s Growth Forecast Amid Destruction of Businesses, Properties

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IMF Says it May Review Nigeria’s Growth  Amid Recent Development in the Country

Following the destruction of businesses and properties that trailed the #EndSARS protest, the International Monetary Fund (IMF) has said it may review the nation’s growth forecast in view of the new development in the country.

Abebe Selassie, the Director, African Department, International Monetary Fund, made the statement while responding to questions during a virtual IMF press conference on the economic outlook of Sub-Saharan Africa on Thursday.

According to him, the protest is difficult given that Lagos is a very important economic hub and contributes to the overall Nigeria activities.

Selassie said, “On the growth projections in Nigeria, I mean, these protests happened of course, after we had closed, after the period where the data we looked at in making the growth projections for this economic outlook.

“And much will depend really on how these protests evolve.

“Lagos of course, is a very important economic hub and contributes quite a bit of economic activity to overall Nigeria activities.

“So, if these persist and are showing significant effects on economic data, we will internalise them in due course.”

He further explained that the nation’s economy had been a difficult one in the last four years ever since oil prices plunged in 2015-16.

He said, “I think this is exactly why we have been on the record in Nigeria about how really critical it is to get all of the policy induced barriers out of the way to facilitate stronger economic growth.

“For the government to do more to raise revenues through the area of non-oil resources to be able to invest in health education which would, you know, allow people to be more successful at getting jobs but also improve the economy’s potential.

“So, I think that development agenda that Nigeria has, I think, has to be tackled with gusto and vigor so that the millions of jobs that the country needs can be created.”

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Economy

Oil Marketers Lose Millions as Hoodlums Set Petrol Tankers on Fire

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Oil Tankers Burnt by Hoodlums as Marketers Lose Millions to Protest

Oil marketers lost millions of Naira to repeated attacks by hoodlums exploiting the #EndSARS protest.

The Independent Petroleum Marketers Association of Nigeria on Thursday said hoodlums have been attacking their trucks since they hijacked the protest earlier in the week.

The association said three petrol laden trucks were burnt again on Thursday in Warri, Delta State.

This came as the Board of Trustees of the Oil and Solid Mineral Producing Area Landlords Association of Nigerian urged protesters across the country to sheathe their swords as the destruction of oil assets and others had become alarming.

Chief Chinedu Ukadike, the Public Relations Officer, IPMAN, who spoke in Abuja said three petrol tankers with petroleum products estimated at about N90 million were set on fire on Thursday.

He said, “The protesters are burning our petrol trucks as we speak right now in Warri. They are burning three trucks. The cost or value of the content in those trucks is about N90m.

“That is outside the worth of the trucks that are being burnt. This is why we asked our tanker drivers to park or temporarily halt the movement of products.”

Ukadike said the association decided to halt the movement of petroleum products on Wednesday to avert a further disaster that could arise attack of oil tankers by angry protesters.

That advise on the temporary halt of tankers movement was vital, particularly for volatile locations where protesters are highly aggressive. So that is what is happening now in Warri, the petrol trucks of oil marketers are being burnt,” he stated on Thursday.

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Economy

LCCI Says FG Loses N700bn to #EndSARS Protest in 12 Days

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Nigeria Loses Over N700 Billion to #EndSARS Protest in 12 Days

The Federal Government lost over N700 billion to the #EndSARS protest in twelve days, according to the Lagos Chamber of Commerce and Industry (LCCI).

Mrs. Toki Mabogunje, the President, LCCI, disclosed this while reviewing the economic implications of the just ended #EndSARS protest.

Mabogunje, who appreciated the value of citizens engagement and the demand for accountability which the protest represents, lamented the negative effect on the nation’s economy.

She said, “These are in consonance with democratic norms. They also form vital ingredients for good governance.

“LCCI is however concerned about the negative impact that the protracted nature of the EndSars protests has on business activities across the country.

“Over the past twelve days, economic activities have been crippled in most parts of the country and has been particularly profound in the urban areas.

“The Nigerian economy has suffered an estimated seven hundred billion naira (N700 billion) loss in the past twelve days.”

She further said the protest has reawakened the need to reform the shortcomings in the nation’s political governance, however added that to protect livelihoods of Nigerians, including business community, the protesters need to move to next stage of civic engagement.

This is necessary to reduce the massive disruptions, blockades and barricades around our major cities and interstate highways. These actions have been at great cost to the economy and the welfare of Nigerian citizens. It should be noted that our economy is still reeling from the shocks of the Covid 19 Pandemic and struggling to recover from its devastating effects,” she added.

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