IFC, a member of the World Bank Group, said today it will
provide advisory services to Diamond Bank Plc to help the lender increase
access to finance in Nigeria’s agricultural sector by up to $33 million over
two years, strengthening a vital but severely underfinanced sector in Nigeria’s
economy and boosting small businesses.
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The projected lending will be extended to small and medium
enterprises across the sector, including livestock farmers, producer groups,
distributors, processors, traders and retailers. It will also target almost
2,000 small holder farmers. IFC will provide Diamond Bank with advisory
services on strategy, product development and risk management, and help develop
a financing model to viably lend to small and medium agribusinesses.
Alex Otti, Group Managing Director/CEO, Diamond Bank, said,
“Diamond Bank has always demonstrated market leadership in the provision of
innovative financial services and solutions to all segments of the society.
Through this partnership with IFC, we are better positioned to serve a faster
growing share of Nigeria’s newly emerging bankable population in the
agricultural sector, and create more growth opportunities for the players as
well as the economy.”
IFC Financial Markets Manager in Sub-Saharan Africa, Ian
Weetman, said, “Increasing growth and employment in the agricultural sector is
a critical objective for IFC in Nigeria and Sub-Saharan Africa. To this end,
IFC’s Advisory Services aim to increase access to finance throughout the
agricultural and food supply chain. We are very pleased to be working with our
longstanding partner, Diamond Bank, in the pursuit of these objectives.”
Agriculture is the main activity of the majority of
Nigerians, accounting for 40 per cent of gross domestic product (GDP) and 60
per cent of employment, but the sector currently only receives 1.4 per cent of
total commercial bank lending in the country. With increased financing, the
agricultural sector can develop as a business to fulfil its potential as an
engine of economic growth and employment.
3 Comments
Good to encourage agriculture
ReplyDelete9ice one...
ReplyDeleteWell sir
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