First City Monument Bank (FCMB), has introduced an enhanced agro-commodity trade finance facility for agribusiness operators.
The development marks another bold step by the bank to expand and deepen its support to the agriculture sector, its value-chain and the overall growth of the Nigerian economy.
The revamped facility is designed for agro-commodity merchants with supply contracts to multinationals, large corporates and processors of agro-commodities.
Targeted commodities are cocoa, cashew nuts, sesame, ginger, palm oil, grains (maize, sorghum, soya beans, paddy rice).
Under this new FCMB trade finance facility which is structured in the form of a working capital, the minimum amount that can be accessed by a qualified customer is N100million, while the maximum is N2billion.
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 exists in agribusiness financing as well as other challenges faced by operators, including farmers, in the sector.
According to him, “ We realise 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.