The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has provided ADT Russet Limited – a cocoa bean-sourcing and exporting company – with a 50 percent credit risk guarantee (CRG) on a working capital facility of N1.15 billion.
This was disclosed by NIRSAL chief executive officer, Aliyu Abdulhameed while speaking on Sunday during a tour of ADT Russet’s factory in Apapa, Lagos state.
Aliyu Abdulhameed, NIRSAL chief executive officer, said the facility is to help Nigeria benefit from the over $67 billion global cocoa market.
Besides the absorption of a substantial part of its risk exposure in the event of loan delinquency, Abdulhameed said NIRSAL is also providing efficient monitoring of the project, which is aimed at boosting ADT Russet’s export volume to 4,000 metric tonnes (MT) yearly.
He said NIRSAL had provided similar support to another cocoa firm in Akure, Ondo state.
“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 said.
He added that the support to ADT Russet’s operations would create a stronger market for cocoa export stakeholders and farmers who supply their inventory.
In his remark, John Chukwu, regional head of Keystone Bank, said the business track record of the ADT Russet and the NIRSAL guarantee convinced the bank to support the initiative.
He explained that deposit money banks do not need to be coerced into financing agriculture, adding that structured value chains and de-risked projects would naturally, and on their own merit, attract any profit-seeking business entity.
Also speaking, Charles Eteri, managing director of ADT Russet, commended NIRSAL for its unique role in supporting serious-minded business firms which operations were contributing to Nigeria’s quest for economic growth and diversification.