IFC collaborates with Diamond Bank on $33m agric sector lending

The International Finance Corporation, IFC, a member of the World Bank Group, has expressed its readiness to collaborate with Diamond Bank Plc through provision of advisory services in helping the bank increase access to finance in Nigeria’s agricultural sector by up to $33 million in the next two years.

Under the arrangement, the IFC will provide Diamond Bank with advisory services on strategy, product development and risk management.

The corporation will also help develop a financing model to viably lend to small and medium agricultural businesses.

A statement from the bank indicated that the projected lending would be extended to small and medium enterprises across the sector, including livestock farmers, producer groups, distributors, processors, traders, retailers and about 2,000 small holder farmers.

The bank said the move would help strengthen the country’s agricultural sector and also support small businesses.

Commenting on the agreement, the Group Managing Director/Chief Executive Officer, Diamond Bank, Mr. Alex Otti, said, “Through this partnership with IFC, we are better positioned to serve a faster growing share of Nigeria’s newly emerging bankable population in the agricultural sector.

He noted that the bank had always demonstrated market leadership in the provision of innovative financial services and solutions to all segments of the society.

IFC’s Financial Markets Manager in Sub-Saharan Africa, Ian Weetman, noted that increasing growth and employment in the agricultural sector was a critical objective for IFC in Nigeria and Sub-Saharan Africa and this he said was the basis of the advisory services which was aimed at increasing access to finance throughout the agricultural and food supply chain.

“We are very pleased to be working with our long-standing partner, Diamond Bank, in the pursuit of these objectives”, he said.

Agriculture sector currently receives about 1.4 percent of total commercial bank lending in Nigeria despite the fact that it accounts for 40 per cent of Nigeria’s Gross Domestic Product (GDP) and 60 per cent of employment.