As a follow up to its Credit Risk Guarantee (CRG) sensitization, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has activated its Project Monitoring function to ensure proper loan utilization and repayment.
Making the announcement on its official social media handles, the financial institution disclosed that its CRG Project Monitoring Team had visited Plateau and Oyo States.
According to NIRSAL, while in Plateau State, the team visited Akia Agro-Allied Production Ltd, a Sorghum Processing Company in Bisichi Barikin Ladi, and Ar-Rahim Synergy, a fertilizer producer in Jos.
It added that in Oyo State, they monitored Cascada Investment Limited’s primary production activities in Onireke, Ibadan.
“All three monitoring visits revealed that the agribusiness are making appropriate use of their loans and are on track for timely loan repayment,” NIRSAL wrote.
Persecondnews.com reports that the NIRSAL CRG secures agribusiness loans against losses, over the life of the underlying credit contract between a financier and actors across all segments of the agricultural value chain.
It also covers the credit risk of default on loan principal and the accrued interest, as It is purchased at 1% (upfront payment) of the loan value and subsequent outstanding balances of the loan annually.
The offer of the NIRSAL CRG serves as a comfort to financiers and investors, encouraging them to lend to the agribusiness.
It covers credit in the form of term loans, and/or debt instruments such as short, medium, and long-term notes, excluding overdrafts.