Heritage Bank and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) have concluded a partnership arrangement that will lead to the identification and secured financing of impactful agribusinesses within all the segments of the agricultural value chain: from primary production for producing raw materials and sustaining the processing industries to exporting the produce.
The MD/CEO of heritage, Ifie Sekibo, at the meeting held at the bank’s head office at the weekend, said the partnership was important because it would help the bank leverage its balance sheet to make loans and credit available at very low interest rates to commercially viable agricultural projects that had been packaged and fully de-risked.
The Executive Director of Heritage, Jude Monye, who disclosed this on behalf of the MD/CEO, disclosed that arrangements had been concluded by Heritage Bank’s management to revolutionise the agricultural sector that would widen and deepen the participation of digital generation into agribusiness. He noted that the continued support of NIRSAL would help the bank take agribusiness to a digitalised level.
According to him, the digitalised platform will help widen distribution of human capital that meets parametres of agribusiness – information, enhance price discovery, provide direct service, give agribusiness authentic voice in media, and enhance agribusiness education in schools, among others. The Managing Director of NIRSAL, Aliyu Abdulhameed, said NIRSAL was willing to work with Heritage Bank to create secured structural finance schemes which would enable Heritage Bank to lend confidently into complete end-to-end along the agricultural value chain, while at the same time protecting its balance sheet.