NIGERIA –Tingo Group, a global Fintech and Agri-Fintech group of companies has provided a US$6.5 million loan facility to the All-Farmers Association of Nigeria (“AFAN”) aimed at developing 3,000 hectares of agricultural land to cultivate rice and wheat.
According to Tingo, the initiative is intended to generate an additional 6,000 Metric Tons of wheat per annum and an additional 16,000 Metric Tons of rice per annum with a combined market value of US$17.5 million per annum.
AFAN will also utilize part of the loan facility to accelerate the onboarding of its warehouses to the Tingo Mobile partnership with Prime Commodity Exchange (“PCX”) as part of its target to achieve a network of 80,000 warehouses in two years.
The President of AFAN, Farouk Rabiu Mudi, expressed optimism about the investment, emphasizing its significance for Nigerian farmers and their ability to increase yields.
“The funds being provided greatly enhance our ability to cultivate vast areas of agricultural land, delivering significant increases in rice and wheat production,” Farouk noted.
He added that Tingo’s commitment is indicative of their invaluable support towards Nigeria’s agricultural development, which AFAN and farmers are very grateful for.
“We look forward to the continued deepening and expansion of our relationship with Tingo Mobile as we work together to support Nigeria’s farmers and deliver mutual benefit for all parties.”
On the other hand, for Tingo, the initiative is a win-win situation as the company expects the arrangement to become a very significant source of supply for its businesses.
“We are not only helping Nigeria’s agricultural community, but we are also generating more business for Tingo Mobile and delivering more produce to Tingo Foods and our Tingo DMCC export business,” said Darren Mercer, Chief Executive Officer of Tingo
In addition, Tingo is hopeful that through AFAN’s position as the umbrella body of all 56 recognized commodities and agricultural associations in Nigeria, the extension and strengthening of their relationship will be highly valuable for the overall Tingo group ecosystem.
With a focus on rice and wheat production, as well as warehousing financing, the loan aims to enhance food production and export businesses in Nigeria.