Ecobank, NIRSAL, others vow to increase loans to farmers

Ecobank Nigeria Ltd has concluded plans to partner with the Nigeria Incentive-based Risk-Sharing System for Agricultural Lending (NIRSAL), United States Agency for International Development (USAID), Development Bank of Nigeria (DBN) and other developmental partners to double the amount of credit it provides to the agricultural sector over the next 2-3 years.

Mojisola Oguntoyinbo, Head of Agric Business Department, Ecobank Nigeria, disclosed this in Lagos on Friday.

According to her, some of the partners will be providing guarantee on loans granted by Ecobank to Nigerian farmers and processors.

“Separately, we are exploring partnership across the globe to support cheaper lines of credit to players in the industry through Export Credit Agencies.

“The bank plans to increase loan portfolio to the agricultural sector by N70billion within the next 2-3years and the lender will hold an Agribusiness summit next month themed – ‘Unlocking Productivity and Investment opportunities across Nigeria’s Agribusiness value chain.’

“It will target all players in all value-chain of the sector (input suppliers, crop and livestock producers, processors, commodity exporters etc),” Oguntoyinbo said.

It could be recalled that banks in Africa’s biggest oil producer are increasing lending to the agricultural industry amid push by President Muhammadu Buhari-led government to diversify the economy away from crude.

Similarly, it would be recalled that the Central Bank of Nigeria (CBN) is regulated banks to maintain a minimum loan-to-deposit ratio of 65% or face penalties, while supporting the government’s drive to produce more food locally and curb imports.

Oguntoyinbo added: “While Ecobank has a loan-to-deposit ratio of more than 65% in Nigeria, it is targeting agriculture to boost its ‘return on investment.’

“Small and medium enterprises are growing rapidly in the agricultural sector and there are opportunities there, which we desire to nurture for growth and development.”