In a dual move to drive its vision for inclusive growth and also contribute its quota to the ongoing transformation in the agricultural sector, First City Monument Bank (FCMB) Limited has promised to intensify its support and commitment towards fast-tracking the sector’s growth, as the country looks to diversify its economy.
The bank says the new move will see it become more focused as a strategic partner to the government and other stakeholders in the Agric sector to ensure food sufficiency, employment, revenue generation, and more importantly increase the sector’s access to its loan book to 8 per cent in 2015.
Disclosing this at a press conference organised by the bank, tagged, FCMB Agric Business: Diversifying the Nigerian Economy, Ladi Balogun, group managing director, FCMB, said “though the bank first cut its teeth in investment banking, the need for a tilt towards retail and sustainable banking have informed FCMB’s decision to help push the transformation agenda in the agric sector, through several bankable partnerships.
“For many years we have talked about the importance of agriculture to our economy because of its huge potential, therefore the transformation of this economy and the growth of this economy without focusing on agriculture is impossible, considering the immense opportunities presented by the sector.
“We have been providing various lines of credit to the sector and its value chain, including small and medium scale businesses. This funding has been on the rise and we are determined to grow it to 21 per cent within the next three years as against 6 per cent in 2014.”
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Among other supports to farmers, FCMB in 2014 provided funding worth N120 million to the Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN) for the acquisition of tractors, which have been distributed to farmers in Kaduna State. It has also collaborated with Doreo Partners to launch a support programme for farmers, known as Baban Gona (or great farm).
This is an agricultural franchise model, where farmers are trained and offered loans to carry out their farming activities. The programme is still running and its impact is being felt across the country. A major component of the FCMBs sustainability principle is agriculture and empowering farmers to reduce the level of poverty among them.
On the focus of the bank in 2015 and beyond, Balogun assured that the bank will increase the level of funding and other forms of support to the agric sector and agro-businesses, including SMEs. “We will also access the N20 billion CACS and Micro, Small and Medium Scale Enterprises (MSME) intervention funds to provide term loan and working capital finance in support of viable agribusiness projects,” he said, adding that the bank will also participate and tap into opportunities in the newly launched Warehouse Receipt System and African Exchange to increase its commodity trading portfolio.
And as part of efforts to enhance transactions, the group managing director said the bank would provide more robust and convenient electronic payment solutions to farmers and other businesses in the agric value chain, such as suppliers, processors and distributors.
Also speaking at the meeting, Danladi Garba, chairman of TOHFAN, commended the bank for its support to the agric sector and farmers.
According to him, through the bank’s effort, more farmers now have access to tractors and this helps in boosting the sector’s growth.
ODINAKA MBONU
