AGRF: African financial institutions to adopt Nigeria’s agric credit scheme
Extract: This scheme might be a powerful game-changing agribusiness model for the continent.The African Green Revolution Forum (AGRF) held its sixth edition this year in Nairobi, Kenya. This yearly forum seeks to accelerate progress on agriculture’s contribution to economic growth and transformation for shared prosperity and improved livelihoods for all.
This year, Nigeria was cited as a country that has developed a successful risk sharing facility for banks to lend to the agricultural sector: the Nigerian Incentive-based Risk Sharing for Agricultural Lending (NIRSAL).
It was stated that through NIRSAL, Nigeria’s economy witnessed a 600 per cent increase in lending to agriculture. The scheme might even have led many banks to establish specialised agricultural desks.
Various head of states and business leaders, as well as AFDB officials, attending the conference, have recommended the adoption of NIRSAL scheme as a strategy for lending to agriculture and allied investments by African financial institutions throughout the continent.