NIGERIA’S agriculture has continued to play a strategic role in its economic growth, thereby justifying calls for in- creased focus in the sector to meet the diversification imperatives of the economy from over reliance on crude oil.
But despite its critical role, the nation’s agricultural sector development has been constrained by the lack of support and access to credit for predominantly small- holder farmers as efforts by successive governments to address the problem have been largely unsuccessful with commercial banks in the country perceiving agricultural finance to be high-risk venture.
Only recently, the Central Bank of Nigeria (CBN) and the Bankers’ Committee agreed to increase lending to the agricultural sector to N300 billion in 2016.
This formed part of the communiqué issued at the end of a two-day seventh Bankers’ Committee retreat titled, “Creating an Enabling Environment for SME Growth.”
CBN Governor, Mr. Godwin Emefiele, while briefing the media at the event, said banks generally agreed to increase lend- ing to the agricultural sector as the committee felt there was need to de-risk the agricultural value chain.
He, however said efforts by the Bankers’ Committee had helped to incentivise lending to the agricultural sector, while pointing out that lending to the sector increased from as low as one per cent in 2010/2011, to four per cent in 2014/2015.
It was perhaps against this backdrop that commercial banks are now seeking new opportunities to invest in the secor, given the radical transformation witnessed in the sector so far.
They believe it will attract Foreign Direct Investment, reduce poverty, reduce the country’s level of unemployment and reduce government reliance on crude oil. It will also help to strengthen the naira against dollar to enhance favourable Balance of Payment, while the railway lines could also be revamped to ease movement of agricultural produce and people alike.
Meanwhile, First Bank of Nigeria Limited, a subsidiary of FBN Holdings Plc has said it would remain committed to the development of the wellbeing of Nigerians through its support for the development of the agricultural value chain in the nation and beyond.
It said its support for the agricultural value chain and by extension food, will enable individual and communal self- reliance, self-contentment and self-sufficiency, which will translate to national growth. This is why the bank is taking ownership of the food space to fully pro- mote businesses that will build the sector and in the long run preserve Nigeria’s teeming population, build revenue for development purposes and create employment opportunities. The effort will also serve to stem corruption and other forms of indiscipline, which threaten economic stability.
The bank recently supported the business, art and entertainment of food across all segments of the economy. At present, the bank is supporting Small and Medium Enterprises (SMEs) through financing options and advisory services to leverage opportunities in the business of food and create jobs in the food industry that catalyse economic growth.
Against this background, First Bank said it is partnering Eventful, a renowned event management company hosted “Fiesta of Flavours”, a world-class food and beverage fair. The three-day food and beverage fair will provide an avenue for attendees to fully experience the entertainment, art and business of food. It also showcased the best in local and international cuisines, cutting edge food technology and cooking techniques, as well as the best beverages, wines and spirits the world has to offer. The event provided management and training seminars, competitions, food demonstrations and performances as well as a live band. Through this, the bank has set the pace for the sustainable development of Nigeria’s economy.
First Bank’s Group Head, Marketing and Corporate Communications, Folake Ani-Mumuney, said that agriculture was the main stay of the Nigerian economy before the oil boom and that there was the need to return to the basics of Nigeria’s industrialisation to stimulate the much needed economic growth at this time.
“The bank’s venture into the food space takes us back to the basis of our economic development as a nation. First Bank is set to support agriculture across the entire value chain to promote economic growth and sustainability, especially in the face of dwindling oil revenue,” she stated.
Source: Sunnewsonline
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