DMBs will significantly develop real sector

The Group Managing Director and Chief Executive Officer, Access Bank Plc, Mr. Aigboje Aig-Imoukhuede, has said that Deposit Money Banks in Nigeria will significantly contribute to the development of the nations real sector.He said that the banks had resolved to take part in driving the real sector of Nigerias economy beyond its present status, noting that the banks would start with the development of agriculture.Speaking at the workshop on Financing Agricultural Input and Supply Scheme2012 Farming Season, Aig-Imoukhuede, who doubles as the Chairman, Bankers Committees sub-Committee on Economic Development, said the DMBs had commenced the enlightenment of stakeholders in the agriculture and finance sectors on the methods of disbursing funds meant for agricultural financing.Together as Nigerian banks, we have taken a stand that we are going to participate in the real sector of the Nigerian economy, and one of such or most important sector is agriculture, he said.He noted that the banks partnered the ministries of agriculture and finance on the initiative, adding that the decision to undertake the sensitisation and enlightenment programme was borne out of an agreement by the banks.Aig-Imoukhuede said the entire document on the financing scheme was initially drawn up by six banks, who later presented it to the remaining DMBs on the platform of the Bankers Committee for inputs and comments.According to him, the banks reached a resolution which was incorporated in a final document used for the preparation of the Memorandum of Understanding that was signed by the banks CEOs.He said the CEOs decided that a series of workshop should be organised to educate and sensitise stakeholders to ways to benefit from the scheme, especially as it was less than 30 days to ensure that the fund get to those in need of it.The Access Bank boss said the financing mechanism was designed to provide N30bn of financial support at single digit interest rate for agricultural input dealers.Aig-Imokhuede added that it was to ensure the immediate supplies of essential inputs to farmers across Nigeria for the 2012 farming season.He explained that under the MoU signed on November 29, 2011, the Banks/Financiers shall provide a total loan facility of up to N22.689bn for financing fertilizer and N2.752bn for seeds procurement and distribution respectively.He further noted that the Federal Government, through the Federal Ministry of Finance, would guarantee 70 per cent of the loan principal payment under the said scheme.
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