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On December 18, 2014 TOHFAN was one of the stakeholders invited by the Central Bank of Nigeria to NIRSAL stakeholders’ sensitisation meeting for the launch of its Guarantee Guidelines for Agricultural Mechanisation Financing. We at TOHFAN are working tirelessly to ensure we are a front runner in Agricultural Machinsation in Nigeria, As such we ensure that our presence and contribution are felt at forums that disscus issue that concerns our and the Agricultural sector.
NIRSAL plc as part of its effort to ensure efficient mechanization of agricultural services, issued the implementation version of its mechanization financing framework (NMFF) as the first step of its rollout plans. This version of the NMFF has features that provides strong incentives to encourage participation by all stakeholders. For instance, the credit risk guarantee levels for counterparties is now 75% of the face value of the loan while borrowers are incentivized to ensure timely loan repayment through a 40% interest rebate when they repay as and when due.
To get a better understanding of our participation it is necessary to understand the role of NIRSAL and what they do; The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL PLC). NIRSAL PLC is an initiative of the Central Bank of Nigeria (CBN), the Bankers Committee (BC) and the Federal Ministry of Agriculture & Rural Development (FMA&RD). Important design and structuring input into the initiative was provided by numerous stakeholders including farmer groups, deposit money banks (DMBs), Ministries, Departments and Agencies (MDAs), processors, civil society groups and financial services providers.
The mandate of NIRSAL PLC is to facilitate the flow of credit to agribusinesses and collaborate with Stakeholders to fix broken agricultural value chains in Nigeria. To be responsive to evolving market conditions, NIRSAL PLC will periodically hold meetings with key counterparties and stakeholders to discuss technical issues related to the optimal functioning of the guidelines.
NIRSAL is a Risk Sharing Fund designed to identify, redefine, measure, re-price and evolve strategies for the risks of lending to the Nigerian agriculture value chain. The Fund will create incentives and catalyze processes to encourage the growth of formal credit (direct and indirect) for the agriculture value chain, as a strategy for wealth creation among participants. NIRSAL PLC will use innovative risk management strategies, long term financing, promote job creation, and establish market participants operating within the country’s agribusiness sector and broader economy.
TOHFAN was invited for the Annual National Agricultural Extension Review and Planning Meeting with took place at the National Agricultural Extension and Research Liaison Service (NAERLS), Ahmadu Bello University, Samaru Zaria. The Extension review and planning meeting is a forum which all stakeholder in the agricultural sector around the country come together to review all their activites of the year.
The stakeholders are invited from Mainly Agricultural sector, National Agricultural Research Institutes (NARIS), Agro Input actors (Seed Vendors, Fertilizer manufacturers and retailers, Researchers, NGO's, State ADP's (Agricultural Development Projects), International organizations etc.
TOHFAN shared its experinces, challenges, in the field our session generated quite a number of responses and questions, the forum also provided us with opportunity to find new partners that will require our services and those we could as well require.
Participant are also expected to come along with their next years (2015) workplan so that other stakeholders can key in, it is at this forum that the National Agricultural canlender is Draw.
TOHFAN has been working closely with Propcom Maikarfi a development partner that has been very supportive to ensure that we grow as an organization that will transform Nigeria Agricultural Mechanization and be very much sustainable. Propcom has laid a great foudation of Sustainable development as a road-map, an action plan, for achieving sustainability in our activity using resources and where immediate and intergenerational replication is demanded.
We at TOHFAN have come to understand that only with Sustainable development can economic growth and human development will the economy be developed and this will translate to the society eventually. Hence we have focused on finding the means of continual development beyond economic development. As such, sustainable development is our main organizing principle for sustaining finite resources necessary to provide for the needs of future generations of life in Nigeria and the planet. It is this process that we envision and desire as a future for TOHFAN as an organization and its activities in the societies. TOHFAN trifes to improve living conditions and resource-use continue to meet human needs without undermining the "integrity, stability and beauty" of nature
We at TOHFAN promote the use of tractors for various purposes one of which is Haulage Services, often the access roads from farms are usually not very good as such transporting farm produce becomes challenging we at TOHFAN see a win-win situation in these service.
Tractors are strong and rogged able to move in all kinds of road, hence we see a big business opportunity in these areas which we are keying into encouraging and building the capacity of our members to levirage on this chances to grow in the buisness.
We also build the confidence of our client with the use of latest technologies such as tracking of our fleet of tractors. Hence we can provide them with a precise location of their goods at any point in time before it gets to the desired location.
Tractor Haulage has the capacity to carry goods of different weights and sizes. Our services are not limited to harvesting seasons alone, as farm house construction materials are part of goods we also transport etc.
TOHFAN Meeting with TATA-John Deere representative in Abuja 2014, on tractor and Implements shows slated to hold across the Country. Mr. Debdut explained in details the reasons and need for them to carry out this activities and emphasized the need for TOHFAN to participate in these events.
In response to Mr. Debdut TOHFAN agreed to participate strongly as a stakeholder,our participation across the country was a win-win case for us as the general public got to know what we do, who we are and praise our effort.
Agricultural Mechanization is capital intensive hence there is need to have a supporting finacial institution. FMCB has been playing this role for TOHFAN since 2014, the relationship we have with FCMB is quite impressive and has help build our business. In May 2014 Facility was provided for about 27 tractor for members across the coutry.
Working together is helping FCMB break grounds in the area of Agricultural financing and giving both parties a win-win situation.
The impressive conditions of our partnership with FCMB is growing stronger as we continue to work together, FCMB will be increasing its support by facilitating about 100 tractors to members across d country in March 2015. The cordial relationship and buisness enviroment we enjoy with FCMB can never be over emphasized.
We at TOHFAN hope that other financial institution will take a cue of this kind of partnership to develop the Nigerian agricultural sector.