First City Monument Bank has introduced an enhanced agro-commodity trade finance facility for agribusiness operators, as part of its efforts to expand its support for the agricultural sector, its value-chain and the overall growth of the economy.
The bank said the revamped facility was designed for agro-commodity merchants with supply contracts to multinationals, large corporates and processors of agro-commodities.
Targeted commodities were cocoa, cashew nut, sesame, ginger, palm oil, grains (maize, sorghum, soya beans and paddy rice).
A statement from the bank said under the new FCMB trade finance facility, which was structured in the form of a working capital, the minimum amount that could be accessed by a qualified customer was N100m, while the maximum was N2bn.
Explaining the rationale behind the introduction of the facility in an enhanced form, the Divisional Head, Agribusiness of FCMB, Mr Kudzai Gumunyu, said the bank recognised the gap that existed in agribusiness financing as well as other challenges faced by operators, including farmers, in the sector.
He said, “We realised there are millions of agro-traders and processors across the country that need credit at convenient and affordable rates, considering the level of attraction the agric sector has garnered. Our decision to introduce a revamped agro-commodity trade finance facility is part of our intervention in the agribusiness space to ensure agribusinesses and other stakeholders are empowered with the requisite funds and enablers to boost production and marketing of agricultural commodities.
“Commodity producers and traders stand to immensely benefit from this facility because it is a veritable and convenient opportunity to access funds that ensure cash flow is available for maximum output. We urge all to take advantage of this offering.”
He said the FCMB was focused on being a strategic partner in the agric sector to drive the diversification of the Nigerian economy, food self-sufficiency, employment and export earnings.