The NIRSAL Credit Risk Guarantee (CRG) is a mechanism for de-risking agriculture and agribusiness financing in Nigeria. It is an instrument issued to protect financiers and investors from possible losses in finance/credit transactions. With the CRG, NIRSAL indemnifies lenders to or investors in agribusinesses of the principal and accrued Interest of loans given to the limit of a pre-agreed CRG rate.

The NIRSAL CRG and all its components is an incentive for financiers/investors to participate more comfortably and profitably in the agriculture sector, providing loans and other debt instruments to agricultural value chain actors.

Leveraging the NIRSAL CRG, Deposit Money Banks and other financiers have securely lent over ₦211 billion to producers of crops and livestock, processors, distributors, and providers of logistics services across agricultural value chains, with a loan crystallization rate of 1% in 10 years.

Operators of agribusinesses and their bankers can jointly explore the benefits of the NIRSAL CRG for increased access to finance, round-the-clock project monitoring, and the chance to receive up to 40% in interest rebates.

Download NIRSAL’s CRG Brochure
CRG

NIRSAL Credit Risk Guarantee (CRG)

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Facilitated for Agriculture and Agribusiness

CRG CATEGORIES

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Smallholder/scale Farmers and Farmer Groups

Single Obligor Limit - ₦5Million

CRG Cover - 75% of the loan

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Cooperatives

Single Obligor Limit - ₦50Million

CRG Cover - 75% of the loan

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Large Scale Primary Producers

Single Obligor Limit - ₦2Billion

CRG Cover - 50% of the loan

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Mechanization

Single Obligor Limit - ₦50Million

CRG Cover - 75% of the loan

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Large Scale Mechanization

Single Obligor Limit - ₦2Billion

CRG Cover - 50% of the loan

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Processors

Single Obligor Limit - ₦2Billion

CRG Cover - 50% of the loan

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Integrated Farms

Single Obligor Limit - ₦2Billion

CRG Cover - 30% of the loan

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Logistics Providers

Single Obligor Limit - ₦2Billion

CRG Cover - 30% of the loan

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Agro-dealers, Input and Equipment Suppliers

Single Obligor Limit - ₦2Billion

CRG Cover - 30% of the loan

CRG REQUEST & ISSUANCE PROCESS

STEP 1 – Farmer/Agribusiness applies for a loan from a Commercial Bank and requests for NIRSAL CRG cover.

STEP 2 – Bank approves the loan and sends CRG request and relevant documents to NIRSAL on behalf of the farmer/agribusiness.

STEP 3 – NIRSAL reviews Bank’s request and checks documents for completeness, accuracy and validity.

STEP 4 – If documents are in order, NIRSAL and Bank conduct farm/site visitation and prepare a report which is subjected to NIRSAL’s internal approval process.

STEP 5 – Upon approval by NIRSAL and payment of CRG fee, NIRSAL issues CRG in favour of the Bank on behalf of the farmer/agribusiness.

STEP 6 – Bank disburses the loan to farmer/agribusiness and NIRSAL commences project monitoring through its nationwide Project Monitoring, Reporting & Remediation Offices.

Interest-Draw-Back

Interest Draw Back (IDB)

The NIRSAL Interest Drawback Scheme is designed to reward diligent borrower behaviour through discretionary rebates of up to 40% of interest paid on NIRSAL CRG-backed agribusiness loans, thereby reducing the effective interest rate for borrowers with a good credit history.

Rebate payments apply only to pre-approved CRG transactions and are made every 90 days subject to compliance with the loan’s underlying conditions and timely repayments of Principal and Interest during the review period.

*Qualification of an obligor for IDB is at NIRSAL’s discretion.

To scale and expand your agribusiness often requires access to credit. NIRSAL’s Loan Facilitation services help you to structure your agribusiness finance and investment needs, understand your financial requirements and match your agribusiness (supported by NIRSAL’s Credit Risk Guarantee), with the appropriate finance and investment options you require. 

Technical-Assistance

AGRIBUSINESS LOAN FACILITATION