First City Monument Bank (FCMB) Limited is set to boost its support to the Agricultural Sector by increasing its loan book from 6% in 2014 to 8% in 2015, VON reports.
The Group Managing Director/Chief Executive, FCMB, Mr. Ladi Balogun stated this while briefing journalists on the performance of the bank in terms of support to the agriculture sector in Lagos.
According to Balogun, efforts by the bank would contribute significantly in the ongoing diversification of the Nigerian economy.
Adding that the bank is focused on being a strategic partner to the government and other stakeholders in the agric sector to ensure food sufficiency, employment and revenue generation, in line with its value as a helpful financial institution.
“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 within the next three years as against six per cent in 2014.”
Diversification of Economy
He pointed out that more than ever, the diversification of the Nigerian economy is critical, stating that for many years there been so much talk about the diversification of the economy. He stressed that the growth of the Nigerian economy without focusing on agriculture is impossible, adding that the opportunities in the agric sector are enormous.
He said banks need to start focusing on sectors that would bring about inclusive growth and sustainability to the economy.
“We have invested as a bank significantly in the agric sector. We have grown agriculture to six per cent of our loan book, from less than two per cent three years ago. Our loan book is over N600 billion. That tells you that we now have over 40 per cent of our exposure to agriculture.
“We are involved, not only in the large corporate end, but really down to the micro end with smaller farmers. So, the agriculture transformation is very real. The involvement of the banking industry is very real. This is not about rhetoric, marketing or blowing our trumpet. But it is really about galvanising every Nigerian to see that this sector is taken very seriously,” Balogun explained.
He said the bank realised there were millions of farmers across the country that needed credit at affordable rates, considering the level of attraction the agric sector has garnered and that made the financial institution to increase its support to the sector.
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), he added.
He described Baban Gona as 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 FCMB’s sustainability principle is on agriculture and empowering farmers with a view to reducing the level of poverty among them.
