FCMB Doles Out N14bn For Agric Business

The sustainable banking
initiative in the financial sector has received a boost from First City Momument Bank (FCMB) Limited with a $70 million (N14 billion) facility created for the agriculture sector in collaboration with International Finance Corporation (IFC).
The package, according to a  report obtained by our correspondent in Port Harcourt, recently is made up of a long term loan of $50 million and a convertible loan of $20 million, targeted at supporting the bank’s growth strategy and helping it increase financing of small and medium enterprises in the sector.
Group Managing Director/Chief Executive FCMB, Mr Ladi Balogum, has viewed IFC’s investment as a stamp-of-approval on the bank’s strategy and commitment to good corporate governance and risk management.
“This partnership with IFC would help FCMB achieve its strategic growth objectives”, he said.
FCMB’s Divisional Head, Agricultureal Business Financing, Gumunyu while elaborating the bank’s interest in agriculture financing said since agriculture has the potential to stimulate economic growth it follows that agricultural financing becomes an important instrument of economic policy.
Gamunyu said FCMB intends to partner with players in the agric space with a view to taking advantage of the many opportunities.
He said the process presents and contributes positively towards economic growth, employment creation, import substitution and economic sustainability.
With regard to the fears by farmers that the turn-around time and conditions attached to some credit facilities could be prohibitive, he allayed their fears.
“Farmers have a point in complaining about slow approval processes as their businesses are season bound and need reasonable time to access finance” he said.
However, farmers have to realise that they also can help by providing the requisite information and that not all credit can be approved as the bank has to be satisfied with the risk and return of transactions.