Union Bank of Nigeria and the Africa Agriculture and Trade Investment Fund announced a $25 million funding line from AATIF to expand the bank’s agricultural business footprint.
Union Bank said it anchored its food and agri-finance strategy around the promotion of local food processing in order to support Nigeria’s government’s effort to reduce food imports and, ultimately, create a sustainable market for local farmers to sell their farm produce.
According to a statement, Union Bank has a long track record in the agricultural sector and has since risen to become one of Nigeria’s top five agricultural financiers, highlighting the sector’s great potential for future expansion and innovation.
The bank focuses on key value chains in rice, poultry, dairy, cassava, maize, and soybean, among others, with the goal of providing tailored funding and technical assistance to the various actors along each of the selected value chains.
According to the statement, the AATIF funding will help Union Bank expand and reach out to Nigerian agribusinesses. The anticipated impact was linked to the development and deployment of innovative agri-product offerings, as well as an increase in funding for agricultural businesses.