Diamond Bank to Invest $33 Million in Nigeria’s Agricultural Sector

One of Nigeria’s leading lenders, Diamond Bank, has agreed to invest $33 million in Nigeria’s agricultural sector over the next two years. The Bank has partnered with the International Finance Corporation (IFC), a member of the World Bank Group to provide advisory services. The IFC, according to the agreement it signed with the Bank, will provide advisory services on strategy, product development and risk management, and help develop a financing model to viably lend to small and medium agri-businesses. The projected lending would be extended to small and medium enterprises across the sector, including livestock farmers, producer groups, distributors, processors, traders and retailers. It will also target almost 2,000 small holder farmers. The Managing Director of Diamond Bank, Mr. Alex Otti, said, “Diamond Bank has always demonstrated market leadership in the provision of innovative financial services and solutions to all segments of the society.” “Through this partnership with IFC, we are better positioned to serve a faster growing share of Nigeria’s newly emerging bankable population in the agricultural sector, and create more growth opportunities for the players as well as the economy.” Also, IFC’s Financial Markets Manager in Sub-Saharan Africa, Ian Weetman, said, “Increasing growth and employment in the agricultural sector is a critical objective for IFC in Nigeria and Sub-Saharan Africa. To this end, IFC’s Advisory Services aim to increase access to finance throughout the agricultural and food supply chain. We are very pleased to be working with our longstanding partner, Diamond Bank, in the pursuit of these objectives.” Agriculture accounts for 40% of Nigeria’s GDP and 60% of employment, but the sector receives just 1.4% of total commercial bank lending in Nigeria.