The Central Bank of Nigeria had in the letter instructed it's Director of Development Finance to suspend further grant of loans to NIRSAL PLC pending recovery of loans earlier granted while many News platforms had reported diversion of funds by the Managing Director of NIRSAL PLC, Aliyu Abduhameed.
This report was first published on 4th March, 2021 and updated on 3rd December, 2022.
As at the time of this Update, the Managing Director of NIRSAL PLC, Aliyu Abduhameed, has been sacked by President Mohammadu Buhari. He was sacked on 2nd December, 2022.
This has created panic among Nigerians interested in the CBN Intervention Schemes who think the decision by the apex bank would interfere with the Loan Programmes or further terminate their interest.The big question is, Is NIRSAL PLC same as Nirsal Microfinance Bank?
The Answer is No.
Let's start with the Nirsal Microfinance Bank.
The Nirsal Microfinance Bank is a Central Bank of Nigeria licenced financial instistution entrusted with Federal Government Loan Schemes such as the Agric, Small and Medium Enterprise Scheme (AGSMEIS), Anchor Borrowers Program (ABP) and the popular Federal Government COVID-19 Stimulus Package for Households and Micro Small and Medium Entreprises (MSMEs), the COVID-19 Targetted Credit Facility Loan.
The Company was incorporated as a Private Limited Company in 2019 and commenced operations following the grant of a licence by the Central Bank of Nigeria to operate as a National Microfinance Bank in the same year.
Asides the CBN Intervention Loan Schemes, the Nirsal Microfinance Bank just like other Microfinance Banks also offers Loans to its customers who have accounts with them at a subsidised interest rate through the Commercial Loan plan. NMFB petronises traders who deal in products such as Food, Electronics, Allied products, Computers/Phones, Spear parts etc.
The Bank is owned 75% by the Bankers Committee, 15% by NIRSAL and 10% NIPOST. Find out more here https://nmfb.com.ng/about/
It's official Website is nmfb.com.ng while current and Ag. Managing Director is Mr. Abubakar Abdulahi Kure.
Refer to Thisday 24th January, 2020 https://www.thisdaylive.com/index.php/2020/01/24/kure-now-acting-nirsal-mfb-ceo-cbn-appoints-new-directors/
Then let's look at the NIRSAL PLC.
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc.) is a US$500million Non-Bank Financial Institution wholly-owned by the Central Bank of Nigeria (CBN) created to Redefine, Dimension, Measure, Re-Price and Share agribusiness-related credit risks in Nigeria.
Established in collaboration with the Federal Ministry of Agriculture and Rural Development (FMARD) and Nigerian Bankers’ Committee in 2013 during Former President Goodluck Jonathan's administration, NIRSAL’s mandate is to stimulate the flow of affordable finance and investments into the agricultural sector by de-risking the agriculture & agribusiness finance value chain, fixing agricultural value chains, building long-term capacity, and institutionalizing incentives for agricultural lending through its five (5) strategic pillars, namely: Risk Sharing, Insurance, Technical Assistance, Incentives and Rating. Find more here on https://nirsal.com/who-we-are/#!/about
It's official Website is nirsal.com and Managing Director as Mr. Aliyu Abduhameed. Find out more here https://nirsal.com/who-we-are/executive-management
The NIRSAL PLC has many partners including UNDP, JAIZ Bank, Fidelity Bank, Appeals Project, BOI, UBA etc but has only 15% share in Nirsal Microfinance Bank. Find more here https://nirsal.com/partners
The NIRSAL PLC had in a tweet retweeted by the Nirsal Microfinance Bank clarified Nigerians that it is not the same with the Nirsal Microfinance Bank.
Applicants of CBN Intervention Programmes have no reason to fear.We're NIRSAL Plc not NIRSAL Microfinance Bank. To find out about NIRSAL Plc, kindly visit https://t.co/yA4z8DKGtY. For enquiries on MSME loans, NYIF, AGSMEIS loan and COVID 19 Credit Facility, kindly contact @NirsalMFB, info@nmfb.com.ng or 094621730
— NIRSAL Plc (@nirsalconnect) March 16, 2021
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