Our MD, Emefiele, Malami Didn’t Loot N150bn Agric Fund- NIRSAL

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has denied reports that its  Managing Director, Aliyu Abbati AbdulHameed, his son, Imran and cronies looted N150bn from NIRSAL.

NIRSAL said it has begun legal proceedings against platforms that sponsored the  allegations.

The investee company of the Central Bank of Nigeria said this in a response sent to THE WHISTLER.

A report had broken early August which alleged that the CBN Governor, Godwin Emefiele, the Attorney General of the Federation and Minister of Justice, Abubakar Malami, were involved in a fraud amounting to N150bn NIRSAL fund.

The report had said, “Alleged fraud involving a whopping sum of N150bn is currently rocking the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending” and “EXPOSED: N150bn Farmers Fund Fraud Scandal Rocks NIRSAL, Emefiele, Malami Fingered.”

According to the report, the funds meant for farmers were looted  over the years.

But in its reaction, NIRSAL said, “It is the height of ridiculousness to make such allegations about a company that is not only under the rigorous oversight of the Central Bank of Nigeria but whose funds are domiciled in the apex bank.

“It is also a fact that NIRSAL PLC, by its mandate, is not a lender that directly provides loans to SMEs or MFBs or any other business for that matter and does not keep farmers or anybody’s funds.

“How can the leadership of an organization steal funds that it never had, funds that simply didn’t exist in the first place? And since these funds did not exist, pray, what funds did the ‘created culprits’ in these ridiculous stories steal? A classical chicken and egg situation arises here.”

The risk sharing agency while denying the allegations said since its inception, its capital base has not exceeded N72.5bn and held with the apex bank.

NIRSAL said “Total capital base is N72.5bn. Perhaps more importantly, this capital is technical, not physical and is held within the CBN system, permanently invested in FGN Bonds, Treasury Bills and other money market investments.

“It is the proceeds from these that the company’s Board of Directors approves, through budget processes, for the management to pay salaries, pay out on crystallized guarantees given to farmers and other agribusiness investors when their loans are unpaid, fix the agricultural value chain through its technical assistance services, train farmers, bankers, insurance industry players, and rate and incentivize good borrowing and repayment behaviour by borrowers when they use NIRSAL Plc guarantees. The CBN is also NIRSAL’s banker, supporting its day-to-day operations.”

NIRSAL explained that it has facilitated a Credit Risk Guarantee (CRG) cover of over N124bn in commercial loans and investments to agriculture and agribusiness, while it also facilitated N40bn from non-commercial sources.

“All the foregoing are monies prudently spent for the public good by NIRSAL Plc from its very modest earnings. Yet, it is within this modest financial provisioning that the organization continues to declare profits, pay dividends, amortize/pay back its own debenture loans and remain a going concern like any other company incorporated under CAMA and regulated by the Corporate Affairs Commission (CAC),” it explained.

NIRSAL added, “On this same subject matter, the High Court of the Federal Capital Territory in suit No: FCT/HC/BW/M/108/2021 between Mr. Aliyu Abbati Abdulhameed Vs. Mr. Adekunle Tom, Thomas, Town Crier Newspaper Limited and Unknown Persons, gave an Interlocutory Order restraining the defendant whether by themselves, their executives, agents, servants, privies, representatives, nominees, or any other person or persons however described from publishing any article, petition, or complaint related or similar to the article published by the defendants about the claimant in the manner of the publication dated 2nd day of February 2021 on any online platform or any other regular media platform pending the hearing and determination of the suit.

“We’ve thrown down the gauntlet. Anyone of these sponsored agents of reputational and institutional destruction can approach the Nigerian Legal system or investigative agencies to substantiate and defend their ‘facts’ if any. We are patiently waiting.”