GOVERNMENT is transforming Agribank into the Agricultural Finance Corporation (AFC) Land Bank to meet increased appetite for farmers' financing needs.
This is expected to oil the transition from land reform to productivity and profitability through filling the gap left by banks that have been reluctant to provide loans to farmers without collateral and preferred security of tenure, including the 99-year leases and offer letters.
President Mnangagwa is expected to launch the AFC Land Bank soon.
Constrained global financial conditions caused by Covid-19 have led to massive portfolio outflows from Africa, exceeding $5 billion in the first quarter of 2020, a new continent-wide survey on trade finance has shown. About $3.1 billion left the South African market alone, the report found.
The Central Bank of Nigeria (CBN) has mandated all development finance institutions (DFIs), microfinance banks (MFBs), primary mortgage banks (PMBs) and finance companies (FCs) operating in the country to enrol on its credit risk management system (CRMS).
The apex bank, in a circular yesterday, said the move was part of efforts to promote a safe and sound financial system in Nigeria.
The CRMS was introduced to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.