AGRICULTURAL FINANCE
COMMERCIAL PAPER
EQUIPMENT LEASING
EXPORT BANKING & FINANCE
FOREIGN FINANCING

AGRICULTURAL FINANCE

FirstBank’s history is rich with testimonies of strong commitment to agricultural financing. From the early days of currency distribution in support of produce trade between West Africa and Europe to its present status as a financial supermarket, our Bank has continued to play an exemplary role in the development of the nation’s agricultural and allied sectors.

Strategic Strengths

• A large network of branches appropriately positioned for easy access to agricultural enterprises in urban, sub-urban and rural areas;
• A dedicated team of agricultural professionals specializing in various agricultural disciplines;
• A suite of sector/customer-friendly agricultural financing products;
• A large base of existing agricultural and agro-allied clientele across Nigeria;
• Professorial chairs endowed in some Nigerian Universities in support of research in Agriculture and Veterinary Medicine.

Services and Products

FirstBank’s agricultural financing operations cover a wide array of agricultural activities ranging from production to processing and marketing. Our services are designed to suit the entire range of micro, small, medium and large agricultural businesses. Our product offerings include:  

• Guaranteed Fund Credit (GFC)

 Based on the Agricultural Credit Guarantee Scheme of the Central Bank of Nigeria, this offering seeks to overcome the problem of acceptable security, and enables customers to take advantage of the CBN’s Interest Draw Back Scheme.  

• Cooperatives/Linkage Banking Scheme

This is targeted at the poorest of the poor, and represents the flagship of the Bank’s micro finance intervention. It is a savings-linked credit scheme which enables micro and small scale farmers in groups of 10 to 25 persons to save collectively and obtain credit facilities when required. The beneficiaries are helped to form small groups, mentored on group deposit mobilization and financial management with a view to qualifying for credit. 

• FirstBank Agricultural Credit to Schools (FACTS)

This scheme provides working capital loans for secondary schools and tertiary institutions with agricultural science curriculum at SSCE level and above, and who have demonstration farms or commercializable agricultural and agro allied projects. 

• Industrial End-user’s Outgrower Scheme

FirstBank’s Industrial End-User’s Outgrower Scheme is a tripartite arrangement between an industrial or commercial end-user of agricultural commodity, the farmers or primary producers, and the Bank. By providing production credit and guaranteed market for produce, it brings together the parties involved in a commodity production, processing, utilization and marketing value chain. 

• Multi-Channels Agricultural Finance Scheme (Multi-CAFS)

The programme targets small farmers who have multiple sources of income, such as salary earners, and complements the cash flow from their farm investments. It provides working capital support for the expansion of individual farm holding. 

• Agricultural Produce Finance

FirstBank’s Agricultural Produce Finance scheme facilitates trade in agricultural commodities by Produce dealers who have adequate storage facilities to stock grains and other commodities at harvest season. The facility finances the procurement, handling, storage and marketing of produce. 

Other service offerings include:

• Agricultural Development Trust Fund Credit;
• Agricultural Credit Support Scheme;
• FirstBank’s Farm Settlement Scheme in partnership with States;
• Term loans and Overdrafts for Individual and Corporate Farmers;
• Commodity Warehousing Security Option.

The Bank’s agricultural financing policy draws heavily from its historical antecedents, competencies, and social responsibility. It guarantees a firm commitment to continually study the operating environment with a view to deploying suitable technologies and international best practices in support of agricultural business.

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COMMERCIAL PAPER

It is a short-term credit paper with a variable tenor of up to 180 days. Interest is collected upfront and there is the option of rollover upon maturity.

EQUIPMENT LEASING

This finance option enables the acquisition of equipment of all types without actual purchase. The service is available to individuals and corporate bodies who need fairly expensive equipment but cannot afford outright purchase. At the end of the lease period, the equipment becomes that of the customer.

EXPORT BANKING & FINANCE

Export Banking & Finance is one of the major products of First Bank of Nigeria Plc. The Bank receives inward letters of credit for onward delivery to customers, processing and registration of NXP forms and handling of shipping documents for negotiation with overseas banks on behalf of customers.

EXPORT DEVELOPMENT CANADA (EDC) - USD 25 MILLION MEDIUM TERM LINE OF CREDIT

A Credit line of USD 25 million has been established between Export Development Canada (EDC) and First Bank of Nigeria Plc to support the sale of Goods and services by various Canadian exporters to various Nigerian buyers.

KEY FEATURES

• Amount: USD 25 million
• Allocation: Shall not exceed 85% of the purchase price of such Goods and services and down payment of 15% of contract price.
• Tenor: 3 & 5 Years (minimum of 24 months)
• Minimum contract price: USD50,000
• Eligible contract between Nigerian & Canadian Businesses.
• Pricing:
  - Libor
  - Margin (2.00% -2.75%)
  - Exposure fee annualised (1.97% & 1.69%)
• Exposure fee can be financed alongside the allocation.

CONDITIONS/ ACCESSIBILITY:

• Canadian Exports to Nigerian Buyers
• Minimum of 60% Canadian contents of Goods/ Services
• Minimum contract price is USD50,000
• Valid and current trade/transaction contract
• Minimum tenor of 24 months
• Maximum tenor of 60 months
• Down payment of 15% of Contract price.

TARGET INDUSTRY WITH COMPARATIVE ADVANTAGE

• Oil & Gas (Energy Upstream & Downstream)
• Construction (Heavy duty equipment)
• Pharmaceutical/ Health Care
• Mining & Solid Minerals
• Services/ Consultancy
• Telecommunications
  

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