15 Things You Need To Know About The New AfDB President
He incentivized Nigerian banks to lend more money for agriculture
Adesina said only 2 percent of all bank lending in Nigeria was going to agriculture in 2013. This for a sector that generates 40 percent of gross domestic product and 70 percent of employment. The reason lending has been so low in agriculture in the past was because banks “could not find the money trail in the agriculture sector,” Adesina said in a ThisIsAfrica interview.
Adesina is credited with introducing Nirsal, an agribusiness facility started in 2011 that is often cited as instrumental in getting banks to increase their agricultural lending in Nigeria.
“What we have shown the banks is that agriculture gives as high and competitive a rate of return as other sectors if structured properly,” Adesina said. “But for banks to lend, we had to fix the agricultural value chain. Now the banks are all exploding on agriculture in Nigeria.”