NIRSAL Secures Union, Sterling Banks’ N232m Financing For Poultry Production, Cocoa Export In Cross River

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ABUJA – Gbagolo Integrated Farms and TOAJ Nigeria Limited are to benefit from NIRSAL plc’s guaranteed Union and Sterling Banks’ N232m facility to assist the entities to boost poultry production and Cocoa Export in Cross River State.

Gbagolo Integrated Farms Limited – a livestock producer and TOAJ Nigeria Limited – a cocoa dealer are leveraging on NIRSAL’s Credit Risk Guarantee (CRC) to secure N81.8 million and N150 million respectively from Union and Sterling Banks to boost bird production and increase Cocoa Export.

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has issued a 50% CRC and 20% Interest Drawback (IDB) on the respective loans for the two companies.

Gbagolo Integrated Farms Limited is expected to use the N81.8 million Loan to finance the purchase of 25,000 Point of lay birds, 25,000 capacity battery cages and feeding compliments, while TOAJ Nigeria Limited will channel its N150 million Export/Trade Finance facility towards the sourcing and purchase of cocoa for export.

The injection of these finances into the poultry and cocoa value chains in Cross River State will create a positive knock-on effect for players along each segment of both value chains and the agribusinesses’ host communities at large.

Specifically, the purchase of 25,000 Point of Lay birds by Gbagolo Integrated Farms Limited will impact poultry feeds sellers & other inputs suppliers in the pre-upstream Value Chain segment; producers/sellers of Point of Lay birds in the upstream segment, and consumers of Eggs and Spent Layers in the downstream segment.

Meanwhile, TOAJ Nigeria Limited’s facility will support the thousands of farmers who supply its inventory by providing them with a secure, sustainable, and guaranteed offtake market. Furthermore, the export of cocoa will increase Nigeria’s stake in the global cocoa market and boost the country’s foreign exchange earnings.

Speaking during the official launch of the Gbagolo Integrated Farms Limited and TOAJ Nigeria Limited projects in Akpabuyo Local Government Area of Cross River State, Aliyu Abdulhameed, NIRSAL Plc’s Managing Director/CEO, enthused that both projects are testaments to the fact that NIRSAL Plc in its bid to realize its vision of “transforming the economy, delivering inclusive growth and positively impacting the lives of Nigerians” supports all sizes of businesses, whether small, medium or large across the length and breadth of the country.

Abdulhameed added that, as a guarantor, NIRSAL Plc’s intervention positively impacts both the lender and the borrower, as well as the overall economy, implying that the lender invests safely and earns competitive returns; the borrower’s capacity utilization and productivity is increased, and the economy reaps the benefits of the backward integration occasioned by increased local production at the expense of importation of essential goods.

Mr. Peter Akpaudoh, Union Bank Plc’s Area Business Executive, who was also present at the launch event, stressed the value in the suite of NIRSAL’s value offerings. Beyond the credit risk guarantee provided to Gbagolo Farms, NIRSAL PLC is also offering technical assistance and round-the-clock project monitoring, a package that really makes lending to agriculture and agribusiness easy, he said.

Sterling Bank Plc, represented by Mr. Uchenna Agbowo, Business Executive, Commercial, South-East, said that, at 10%, Sterling Bank has the highest loan book for agriculture amongst commercial banks in Nigeria. He stated that the bank has been enjoying NIRSAL’s support and will continue to count on NIRSAL for the safety of their agribusiness investments.

In his speech, the CEO of Gbagolo Integrated Farms Limited revealed that it would have been difficult to service the loan they received from Union Bank if not for NIRSAL’s Interest Drawback (IDB) scheme. The company’s poultry department, which received the credit support, has 60,000 birds and runs an on-farm feed mill with four tons capacity mixer per hour.

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Source: Daily Independent

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