News in brief:
– NIRSAL, a key institution for agricultural lending in Nigeria, has appointed a new board led by Babajide Arowosafe.
– The new board aims to refocus NIRSAL on its core mission of reducing agricultural lending risks and addressing challenges of the past.
Nigeria’s Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc.) appointed a new board of directors after its former one was dissolved by the country’s central bank (CBN).
Babajide Arowosafe, a former Ekiti State agriculture commissioner, was elected to lead the new team as Managing Director (MD) and Chief Executive Officer (CEO). He has held finance positions at the International Finance Corporation (IFC), the World Bank, the United Nations Development Programme (UNDP), and Southwest Agric Company (SWAgCo).
In a statement released Wednesday, the company said that the board will refocus NIRSAL Plc back to its mandate: to reduce the risk of agricultural lending.
Muhammad Sani Abdullahi assumed the role of board chairman. He had been the CBN’s Deputy Governor on Economic Policy. Other non-executive directors appointed include Mallam Ado Wanka; Daphne Dafinone; Hamidu Sa’ad of the CBN’s Development Finance Department and one-time acting MD of NIRSAL; Bankole Allibay; and Shehu Balarabe, who is a medical doctor and a former Commissioner of Health and Budget and Economic Planning in Sokoto State.
NIRSAL’s past has been marked with struggles since it was incorporated in 2013. Public opinion about the institution has been negative with one former managing director under investigation for fraud.
As a crucial tool in promoting agricultural development in Nigeria and improving food security, NIRSAL is expected to address challenges that farmers and investors face. For example, the recent report that the agricultural sector has continued to attract only 0.47% of foreign investments, despite its hefty contribution to the country’s gross domestic product (GDP), is a concerning trend.
An optimised NIRSAL would prioritise the major stakeholders in Nigeria’s agricultural sector and streamline its operations to align with its objectives while also providing intelligence. Additionally, it can be a way for the country to earn more foreign exchange (FX) if it can encourage diasporans to invest in the country’s agriculture through guarantees and tools for monitoring, evaluation, reporting, and transparency.
The new board taking over the mantle is full of hope in seeing through its mission and vision of transforming the economy.
