NIRSAL, MECA sign pact with World Bank on agric mechanisation

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The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), along with its technical partner on agricultural mechanisation – Machines and Equipment Corporation Africa (MECA) has signed an agreement with the World Bank’s FADAMA III-AF programme to guarantee mechanisation of agricultural value chain in Nigeria.

Following the agreement signed on Monday in Abuja, FADAMA III-AF has entrusted its Agricultural Infrastructure, which includes mechanisation equipment, irrigation systems, and storage facilities in the hands of NIRSAL and MECA, through their joint mechanisation programme- the NIRSAL Comprehensive Agricultural Mechanisation Program (NCAMP).

NCAMP, a holistic mechanisation programme designed to address the low agricultural mechanisation was launched by NIRSAL in 2017 to enable it provide up to 75 percent guarantee for banks to release the total amount required to service and repair about 10,000 tractors annually for the next ten years in the country.

The project initiators hope that the project, if well implemented, could catalyse up to N1 trillion agriculture contribution to the nation’s annual GDP.

Speaking at the signing ceremony, Aliyu Abdulhameed, Managing Director/CEO of NIRSAL said FADAMA’s recognition of NIRSAL as a capable partner that would continue with the developmental activities FADAMA was commendable and raised the hope that the project would succeed.

NIRSAL is concerned that there are just approximately 6.5 tractors for every 100 square kilometres of arable land in Nigeria as against the global average of 200 tractors for every 100 square kilometres and is even more worried that most of the tractors which have gone bad are not being repaired despite the fact that the country’s need for mechanised farming.

“In financial terms, repairing 55,000 broken down tractors will cost Nigeria only N30 billion. Compare that with having to buy 55,000 new tractors which will cost Nigeria about N660 billion which is equivalent … Read More...

State governments, banks, sign on for pilot of NIRSAL rating project

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The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has activated its Rating and Incentive pillars as part of its broad mandate to fix broken agricultural value chains and stimulate the flow of finance and investment into the agribusiness sector in the country.
As contained in the press statement  from NIRSAL, the  rating facility seeks to assess the performance of key stakeholders such as financial Institutions and state governments on the effectiveness of their agricultural policies and programmes.
The first phase of this Ratings exercise which is targeted at Banks, Insurance Companies and State Governments is expected to commence on May 13, 2019, with six financial Institutions – Stanbic Bank IBTC, Ecobank, Sterling Bank, AIICO Insurance, AXA Mansard and LAPO Microfinance Banks – which have expressed interest in participation.
“At least three state Governments will also be assessed during this pilot phase. The results of the pilot phase will be used to design a comprehensive roll-out of the Ratings Programme for all interested stakeholders”.
The statement shows that rating and incentive pillars represent the last two of the five pillars of NIRSAL to be activated, while the first three are the risk sharing facility, the technical assistance facility and the insurance facility,adding that the five strategic pillars provide the funding basis for NIRSAL’s de-risking operations and interventions across the agricultural value chain.
“To successfully activate its Rating and Incentive pillars, NIRSAL has developed a scoring methodology for these three clusters to enable independent assessment of their agricultural activities. These scoring methodologies have been validated by the relevant stakeholders through a consultation workshop held in November 2018”.
“The consultation programme was well attended by participants from Access Bank, WEMA Bank, Sterling Bank, First Bank, LAPO Microfinance Bank, Leadway Assurance Company Limited, AXA Mansard Insurance Plc, … Read More...