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Tuesday, September 24, 2013

Agric: Banks’ lending set to rise to 7% in 10 yrs

Anthony Nwakaegho/NaijaAgroNet

The Central Bank of Nigeria (CBN) Deputy Governor, Financial System Stability, Dr Kingsley Moghalu, dropped the hint on a sideline at the end of the Euromoney Conference held in Lagos, and said that the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) initiative has boosted agricultural lending to farmers  in the country.

NaijaAgroNet recalls that the agricultural sector has received tremendous attention due to the transformation agenda of President Jonathan’s administration that has envisioned the sector as the key to economic growth and development in Nigeria.

 However, available data from CBN revealed that NIRSAL which guarantees up to 75 per cent of the bank loans to the sector was initiated in July 2013 to grow loans to the sector to four per cent of banks’ total loans, from the average of 1.5 per cent in 2009.

For the records, NIRSAL which is the initiative of the CBN, the Bankers’ Committee and the Federal Ministry of Agriculture and Rural Development (FMARD), seeks to create incentives and modify all the processes that will encourage the growth of formal credit, direct and indirect, for the agriculture value chain.

*With additional report from Nation

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