Fidelity Bank Plc., one of the country’s leading
financial institutions has pledged to support ongoing efforts aimed at
strengthening Nigeria’s agricultural value-chain by providing innovative
funding schemes and technical advisory services to Micro Small and Medium Scale
Enterprises (MSMEs) and Commercial agribusiness projects. The Bank’s Head,
Agric Division, Omobola Odubanjo disclosed this in Lagos on Tuesday while
delivering a keynote address at a breakfast meeting organised by
Nigerian-Netherlands Chamber of Commerce (NNCC) in strategic partnership with
Fidelity Bank.
Odubanjo said the Bank’s decision to move in this direction
was driven essentially by the sector’s huge potential to become a major Foreign
Exchange (FX) earner and help boost the country’s revenue base. “Nigeria is
blessed with over 84 million hectares of arable land suitable for crop
cultivation and livestock production. In fact, only 40 percent of
that land mass is cultivated while 1 percent is irrigated. Nigeria has a
youthful population yet to be sufficiently engaged”, she explained.
With a population of 180 million people, Odubanjo noted that
the country has one of the largest economy in Africa with great opportunities
for its agricultural, manufacturing and services activities. She urged
attendees some of whom included investors, entrepreneurs and delegates from
Netherlands-African Business Council (NABC) to take immediate advantage of the
prevailing opportunities in the sector, assuring them of quick returns on
investment.
Odubanjo however identified funding constraints,
infrastructural bottlenecks, security, food storage and processing facilities,
poor research & development, and unfriendly government regulations as some
of the critical challenges hindering the development of Nigeria’s agricultural
sector. She said the Bank was well-positioned to assist Dutch investors
navigate Nigeria’s evolving economy in relation to business matchmaking,
facilitating links to market and liaison with regulatory agencies. "Having the
right partner makes doing business in Nigeria easy. We can also help you manage
your trade risk through Documentary Collection, Documentary Credits via Letter
of Credits, market research, enhancing your Working Capital and providing Bonds
and Guarantees to support payment obligations."
While admitting that agribusiness holds the key to
sustainable economic development, she however pointed out that the financial
institution has moved well beyond assisting businesses involved in food
production, processing, supply and marketing activities to focusing on more
sophisticated and value-creating areas such as AgriFinance, AgriEducation,
AgriHealth, AgriEnergy, amongst others. On his own part, Reginald Ihejiahi,
chairman, NNCC said that Nigeria’s agricultural sector has a high potential for
growth, but this potential is not being realized. Ihejiahi, a former Managing
Director/Chief Executive Officer of Fidelity Bank Plc said “Let us be actively
involved in agriculture for the economy of the nation to grow”.
On her part, Managing Director of AfricInvest, Abiola
Ojo-Osagie emphasised the importance of agriculture to aiding the
diversification of Nigeria’s economy. Ojo-Osagie pointed out that the private
investment company was established to promote and foster ideas that can drive the
economy of the nation forward. Offering extensive expertise in key growth
industries, including financial services, agribusiness, consumer/retail,
education and healthcare, she said the organisation is well positioned to
partner local and international organizations to aid economic
development.
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