Aliyu Abdulhameed (@Aliyu_Hameed) was appointed as Managing Director/CEO of NIRSAL Plc, a wholly-owned corporation of the Central Bank of Nigeria (CBN), created in 2013 to stimulate the flow of affordable finance and investments into the agricultural sector by de-risking the agribusiness finance value chain, fixing agricultural value chains, building long-term capacity, and institutionalizing incentives for agricultural lending.
In five (5) years of leading NIRSAL from 23 December 2015, Aliyu Abdulhameed has built NIRSAL from near-zero to a position of national, continental and global recognition as an authority in agricultural risk management and financing.
Aliyu’s 5-year Scorecard gives an account, across various performance dimensions, of how he has led NIRSAL to challenge the status quo, ask the tough questions and design game-changing systems and solutions for agricultural risk management, value chain development and financing. The results are obvious in terms of:
His achievements cut across the following key performance areas:
Aliyu’s achievements in the leadership of NIRSAL and the game-changing, sustainable interventions introduced are visible and attested to by serious-minded actors in the local and international agricultural value chain and agriculture value chain finance spheres.
HIGHLIGHTS OF ALIYU ABDULHAMEED’S 5-YEAR SCORECARD ACHIEVEMENTS
Funding in the sum NGN145 billion has been facilitated to various actors for mechanization activities, input distribution, and the production, processing, trading and marketing of agricultural commodities from various sources.
Abdulhameed has grown the NIRSAL CRG as a symbol of trust for lenders and investors. Over 26 financial institutions are using the NIRSAL Credit Risk Guarantee (CRG) instrument to minimize possible losses in financing agribusinesses.
Because of NIRSAL’s solutions, commercial banks have pledged to provide an additional NGN160 billion to fund agriculture, provided the NIRSAL guarantee and its structured approaches are in place.
NIRSAL has trained over 2,600 staff of financial institutions and engaged with 17 Bank Management Credit Committees for capacity building, joint product development, and bottom-up and top-down engagements for financing commitments.
· Within two years of intervening in agricultural insurance, from 2017 to 2019, the number of smallholder farmer subscriptions to agricultural insurance rose exponentially to 1.8 million with the NIRSAL Area Yield Index Insurance (AYII) accounting for ~70% of total subscriptions.
This is attributable to the influx of the private sector with up to nine (9) private insurance companies adopting NIRSAL’s innovative index-based agricultural insurance products whereas, agricultural insurance was previously handled mainly by NAIC only given the dearth of viable and innovative products before NIRSAL stepped in.
NIRSAL introduced the Agro Geo-Cooperative concept for structuring farmers with proper governance structures and aggregating their farmlands into contiguous stretches of 250 hectares each.
So far, 2,743 agro geo-cooperatives have been formed by NIRSAL covering 600,000 hectares and over 408,000+ farmers which are being presented to the Central Bank of Nigeria and other financiers for funding of primary production (farming) activities.
A Mapping to Market (M2M) Strategy has been developed by NIRSAL and is enforced across all supported agricultural transactions to ensure effective linkages to adequate input and output markets.
16 innovative agribusiness models have been developed for optimized value chain operations on various agricultural commodities and are being demonstrated by NIRSAL and adopted by the private sector and other actors.
Despite inheriting a Non-Performing Loan (NPL) portfolio of 7.2% in 2015, which was higher than the industry average at the time, NIRSAL now maintains a less than 1% Non-Performing Loan portfolio, compared to 6% average rate currently obtainable across the banking industry.
This feat is a result of robust credit risk management practices and effective loan recovery strategies introduced by Abdulhameed. NIRSAL performs comprehensive project monitoring of all supported projects as a critical risk management strategy leveraging its 37 operational Project Monitoring, Reporting and Remediation Offices (PMRO) across the 36 States and the FCT covering 774 local government areas as well as its field ICT monitoring technologies.
The NIRSAL PMRO service is subscribed to on over 235 agricultural value chain projects and by 15 financial institutions nationwide.
NIRSAL, formerly a project office at the CBN, is now structured into 20 strategic and operational business units for the delivery of its mandate.
· Coming out of the CBN with a team of three (3) core staff, NIRSAL is now fully manned with 255 core staff, 546 project monitoring, reporting and remediation officers nationwide to deliver its corporate objectives.
· NIRSAL now operates from 40 physical offices across all the States of the Federation and the FCT.
· Estimated NGN510billion worth of economic activity generated;
· 515,000+ Direct Employment created/sustained;
· 3million+ Nigerian lives positively impacted; · Promotion of climate-smart agriculture models, enablers and practices;
· Facilitation of climate finance for agricultural value chain actors;
Discussions with Morocco, Germany, France, etc. on foreign investments and de-risking interests;
Establishment of a Risk Sharing Facility for the Government of Togo with overtures from Angola, Gabon, Ghana, South Africa, Uganda, Zimbabwe, etc. due to the brand equity already built up by NIRSAL which is a huge pride for Nigeria in the international community.
It is important to note that
as it's often being confused. While
is responsible for disbursement of individual loans such as the covid loan, AGSMEIS
and survival fund etc,