In a significant move, the Central Bank of Nigeria (CBN) has announced the dismissal of the board and executive directors of the Nigeria Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL). The affected individuals include CEO and Managing Director Abbas Umar Masanawa, Executive Director of Operations Kennedy Nwaruh, and Executive Director of Technical Services Olatunde Akande.
This decision has not come as a surprise to industry watchers and financial analysts who have followed the mounting challenges within NIRSAL. The institution, established to “Derisk agriculture, Facilitate Agribusiness” and tasked with “Redefining, Dimensioning, Measuring, Re-Pricing, and Sharing agribusiness-related credit risks in Nigeria,” has been under scrutiny for alleged mismanagement.
Attention on NIRSAL intensified with the appointment of the Jim Obazee investigative committee, which uncovered troubling issues within the organization. This scrutiny reached a peak in July 2024 when House of Representatives member Chike Okafor moved for a probe into NIRSAL and other agricultural bodies. Okafor argued that food scarcity in Nigeria was tied to the mismanagement of funds intended for agricultural development.
Analysts describe the CBN’s decision as a bold step towards addressing the governance issues at NIRSAL. Many see it as part of a broader effort to clean up the apex bank and restore financial responsibility, corporate governance, and transparency. This move is seen as an attempt to revitalize the institution and ensure it aligns with its original mandate of derisking agriculture and facilitating investments in the sector.
NIRSAL, which was launched in 2011 and incorporated in 2013 by the CBN as a $500 million public-private initiative, was designed to catalyze finance and investment into agricultural value chains. According to its profile, it aimed to address challenges in agricultural financing, including a lack of understanding of the sector, perceived high risks, and complex credit processes.
With this shake-up, the CBN appears committed to tackling inefficiencies and ensuring that NIRSAL fulfills its role in supporting Nigeria’s agricultural development. bold move at NIRSALA
wag once said that the road to hell is paved with good intentions.
This aphorism is important in considering the news from the Central Bank of Nigeria (CBN) announcing the sack of the board and executive directors of the Nigeria Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL).
Those affected include the chief executive officer (CEO) and managing director (MD), Abbas Umar Masanawa; Kennedy Nwaruh, executive director, operations, and Olatunde Akande, executive director, technical.
The news did not come as a surprise to many watchers and financial analysts who have followed the unravelling mess at the agricultural intervention institution which has as its tagline – “Derisking agriculture, Facilitating Agribusiness” and which was ostensibly set up to “Redefine, Dimension, Measure, Re-Price and Share agribusiness-related credit risks in Nigeria.
”Attention began to focus on the NIRSAL following the appointment of the Jim Obazee investigative committee which unraveled unsavoury tales from the CBN wholly owned NIRSAL.
It ratcheted up with the motion by house of rep member, Chike Okafor, in July 2024 asking the house to initiate a probe into NIRSAL and others as a means of unravelling the reasons behind the food scarcity which he said was linked to the alleged mismanagement of agricultural funds intended for agricultural development in the country.
Analysts are describing the move as a bold one from the CBN which seems focused on cleaning the Augean stable at the apex bank and reintroducing a new regime of financial responsibility, corporate governance and transparency.
According to its profile on LinkedIn: “NIRSAL was launched in 2011 and incorporated in 2013 by the Central Bank of Nigeria (CBN) as a dynamic, holistic $500 million public-private initiative to catalyse the flow of finance and investments into fixed agricultural value chains. NIRSAL seeks to address the causes of low funding levels in the agriculture sector, including lack of understanding of the sector, perceived high risks, complex credit assessment processes/procedures, and high transaction costs.”
