By Aduragbemi Omiyale
One of the aspirations of agribusiness owners is to expand their operations, but this has not been achieved largely due to lack of funds.
However, Stanbic IBTC Bank is committed to solving this problem by providing financing solutions to agricultural enterprises tailored to their needs regarding the availability of resources for the purchase of mechanized agricultural equipment, as well as improving the flow of seasonal cash for industrial production.
The lender said it supports the sector because of its importance to the country’s economy, as it is essential for sustainable development and essential for job creation.
The Head of Agribusiness at Stanbic IBTC Bank, Mr. Wole Oshin, said Nigeria’s ambitions for accelerated and inclusive economic growth hinged on achieving a vibrant agribusiness sector capable of sustaining the enterprise development and large-scale employment.
He pointed out that Stanbic IBTC offers various credit facilities in the agricultural sector that help value chain actors to thrive.
“The loan facilities available are intended for agribusinesses to meet the short to medium term financing needs of crop and livestock producers, processors, their distribution chain and other value chain actors. The loans provide revolving working capital (to meet day-to-day operational needs and purchase inputs such as seeds, fertilizers, raw materials) and equipment financing solutions to farmers and agribusinesses,” said Mr. .Oshin.
According to him, some advantages of Stanbic IBTC agribusiness financing include the availability of surge financing for unforeseen financial needs, maintenance of cash flow, and flexibility of repayment terms depending on the type of financing. . He added that the facility was also versatile and could be used to finance resources for small and medium enterprises (SMEs), vehicles and agricultural equipment.
In addition, Mr. Oshin added that Stanbic IBTC has stepped up its efforts for the betterment of the agri-related sector by offering free capacity building sessions to SMEs in the industry, noting that most of the sessions help educate the SME owners on key business skills.
He noted that Stanbic IBTC Bank also provides financing solutions to agricultural enterprises to meet their needs regarding the availability of resources for the purchase of mechanized agricultural equipment, as well as improving seasonal cash flow for production. industrial.
“For example, Stanbic IBTC has committed £50 billion to launch a national agricultural finance scheme. The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and has signed a Memorandum of Understanding to boost agricultural productivity and modernization by facilitating increased bank lending to the sector,” he said.
Mr. Oshin said that Stanbic IBTC has committed these funds for the start of the program. The first phase of the program is expected to impact thousands of lives through job creation and increased incomes for farmers and agribusinesses, a testament to the financial institution’s efforts to spur a inclusive economic growth through agriculture.
He explained that Stanbic IBTC expects the program to increase production from farmland, diversify the revenue base and provide vital resources and raw materials to the manufacturing sector. He said the idea of providing financial solutions to agriculture and agribusiness as a strategy for accelerating economic growth is gradually gaining traction.
“Stanbic IBTC understands that financing agro-allied industries is a sure way to diversify the Nigerian economy as these industries are poised to trigger rapid business development in Nigeria,” Mr. Oshin noted.
Improving access to credit for small farmers and agribusinesses at low interest rates will have a huge impact on the micro and macro economy. The growth of the agricultural sector is essential to economic development. Stanbic IBTC recognizes this and that is why the organization intentionally develops initiatives and fosters partnerships that support industry players.