ADT Russet Gets NIRSAL’s N1.5 Billion Facility, Boosts Annual Cocoa Export By 4,000MT

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ADT Russet Limited, a Lagos based Cocoa bean sourcing and exporting company, has been boosted with a 50% Credit Risk Guarantee (CRG) on N1.15 billion working capital by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) to help Nigeria tap into the lucrative global Cocoa market estimated to worth over $67 billion.

NIRSAL Plc said, aside from absorbing a substantial part of the risk exposure in the event of loan delinquency, is also expected to efficiently monitor the project which is heard to increase ADT Russet’s export volume to 4,000MT per annum.

By supporting ADT Russet’s operations, NIRSAL Plc is also indirectly creating a stronger market for the many cocoa farmers who supply their inventory.

A Special Purpose Vehicle (SPV) that was set up only in December 2019 by Arma Dei Trading Limited, ADT Russet Ltd. has leveraged NIRSAL Plc’s support to export over 1,600MT of Cocoa to international markets, surpassing its parent company which has been in existence for years.

Speaking during a tour of ADT Russet Ltd.’s factory in Apapa, NIRSAL Plc’s Managing Director/CEO, Mr Aliyu Abdulhameed, noted that NIRSAL has provided similar support to another cocoa processing and exporting company in Akure, Ondo State.

He said, “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.”

Mr Charles Eteri Managing Director of ADT Russet, who conducted the NIRSAL team on the tour said NIRSAL is playing a unique role in supporting serious-minded business firms whose operations are contributing to Nigeria’s quest for economic growth and diversification.

He said that his foray into agro exports have been successful, and the potentials for growth huge, owing to NIRSAL Plc’s innovative support. He commended NIRSAL’s value-chain approach to agribusiness financing, pledging to contribute to the sustenance of the cocoa value chain by dealing fairly with the smallholder farmers who supply his inventory.

On the tour of ADT Russet’s facility include Mr John Chukwu, Regional Head, Keystone Bank and his team, as well as staff of NIRSAL Plc’s Project Monitoring, Reporting and Remediation Office (PMRO) in Lagos State, promoters of the project.

Speaking for Keystone Bank, Mr John Chukwu opined that Deposit Money Banks do not need to be coerced into financing agriculture, insisting that structured value chains and de-risked projects would naturally, and on their own merit, attract any profit-seeking business entity, a statement released last night by NIRSAL Plc said.

Chukwu pointed out that where there is a strong intention to support national priorities, like in Keystone Bank, de-risked and structured agribusiness projects become an even more compelling business proposition.

The tripartite relationship between NIRSAL Plc, ADT Russet Ltd. And Keystone Bank is part of the growing outcomes of NIRSAL Plc’s high-level engagements with Deposit Money Banks, Merchant Banks, Finance Houses, MDAs of Government, and local and international Development Finance Institutions (DFIs), wooing them into an agriculture/agribusiness space that is witnessing paradigmatic changes on account of NIRSAL’s work.

Over the years, the risk management institution has facilitated the flow of more than N150 billion into agriculture from multiple sources. At least N124 billion of that sum came from commercial banks who leveraged NIRSAL’s Credit Risk Guarantee (CRG) facility in addition to investing in de-risked, structured, and well-monitored projects to make high investment returns.

While NIRSAL Plc relies on the high level of control afforded it by its innovative value chain solutions as a safeguard for its risk exposure, the banks rely on the same, in addition to the CRG facility for the safety of their financial investments. According to the value chain segments where projects are situated, NIRSAL’s guarantee cover on bank loans ranges from 30% to 75%.



Source: Daily Independent

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