Loan utilization, repayment: NIRSAL embarks on monitoring of beneficiaries in six states

As part of its post-Credit Risk Guarantee (CRG) issuance activities, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc  has embarked on monitoring of beneficiaries in six states.

The states are Cross River, Adamawa, Osun, Oyo, Bayelsa and Zamfara.

According to the non-bank financial institution, post-NIRSAL-CRG issuance monitoring ensures that agribusinesses enjoying the cover on their commercial bank agric loans make appropriate use of the loans and adhere to loan repayment agreements.

Persecondnews reports that NIRSAL CRG, which is the core service provided by NIRSAL Plc, is an instrument issued to protect financiers and investors from possible losses in a finance/credit transaction through a risk sharing arrangement under which NIRSAL indemnifies the lender or investor of the Principal and accrued Interest to the limit of a pre-agreed CRG rate.

The offer of the NIRSAL CRG serves as a comfort to financiers and investors, encouraging them to lend to agribusiness as it 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.

“Post-NIRSAL Credit Risk Guarantee (CRG) issuance monitoring continues in Adamawa and Osun states.

“Specifically, we visited a rice processor and cocoa trader to monitor their respective commercial bank loan utilization and financial records.

“In Bayelsa, Oyo and Zamfara states, we visited poultry farms and a fertilizer producer. The visits introduced them to the benefits of the NIRSAL CRG, particularly, how the product can ease the approval of commercial bank agribusiness loans.

“NIRSAL Plc’s nationwide NIRSAL Credit Risk Guarantee (CRG) sensitization drive has contributed to the facilitation of commercial finance to farmer groups and agribusinesses,” NIRSAL disclosed in a post on its Twitter handle.

The organization also announced that it recently enrolled smallholder farmers on its Bank Verification Number (BVN) platform, across Adamawa and Cross River states.

NIRSAL said BVN registration is a key step the organization is taking to link smallholder farmers to commercial financing.