AS part of its developmental function, the Central Bank of Nigeria (CBN), the apex bank introduced Commodity Development Initiative (CDI) in 2019 with 12 focal commodities including cassava.
This initiative is aimed at conserving foreign exchange through import reduction and boosting local production, thereby closing the existing supply gap of agricultural commodities with comparative advantage, as well as job and wealth creation.
This initiative has enabled CBN to intervene across the value chain of several commodities from production to processing.
Psaltry International Company Limited is a beneficiary of the Commercial Agriculture Credit Scheme (CACS), one of the CBN’s interventions aimed at fast-tracking the development of the agricultural sector of the Nigerian economy by providing credit facilities to commercial agricultural enterprises at a single-digit interest rate.
A Deputy Director at CBN and Secretary to the board of Agricultural Credit Guarantee Scheme (ACGS), Mr Edwin Nzelu, made this known recently, during the inauguration of the first cassava-based sorbitol factory in Nigeria, Africa and the second in the world owned by Psaltry International Limited and located in Alayide Village, Ado-Awaye, Oyo State.
The CBN noted that the value chains in cassava make it one of the crops to be focused on, adding that the bank is willing to fund any project associated with agriculture and its entire value chain.
Nzelu said: “It is an aspect of CBN intervention, the CBN actually started intervention as far back as 1977 when the Agricultural Credit Guarantee Scheme (ACGS), was initiated and this was meant for smallholder farmers.
“In 2019, the Commercial Agricultural Credit Guarantee (CACG), started and was meant to support the big agricultural schemes. Also in 2019, we introduced the 12 commodities Development Initiative. Cassava is one of them and Psaltry International Limited is one of the first beneficiaries of that initiative.
“As far as agriculture is concerned, the CBN is ready to fund whatever is associated with it. We finance all the value chain of agriculture, from production, processing and marketing. We are aware that cassava has a lot of potential and we are ready to support in tapping them by giving full support where necessary.”
Describing the socio-economic impact of the Sorbitol factory, the Founder/CEO, Psaltry International, Mrs Oluyemisi Iranloye, said, “this factory which is first of its kind in Africa, is projected to create 25,000 direct and indirect jobs while empowering 10,000 rural farmers and families living within an 80km radius covering more than 20 host communities around Oke-Ogun in Iseyin, Oyo State. The factory, which will produce 24 tons of Cassava-based Sorbitol daily, was financed by FCMB through the Central Bank of Nigeria’s Commercial Agriculture Credit Scheme and has Unilever as the largest off-taker as part of its localisation of raw materials for production. Also called sugar alcohol, Sorbitol is used to preserve moisture, add sweetness, provide texture to products, and potentially support digestive and oral health.”
She added that landing in the factory is a journey of courage, resilience, and boldness to excel in the world’s cassava value chain beyond the norm. The aim is to reduce the challenges facing manufacturers who import Sorbitol into Nigeria, a product that is 90% major ingredient in toothpaste and pharmaceutical syrup production. In addition to employment opportunities for youths and farmers, the factory will directly impact a minimum of 100,000 people around the host community. It will also save Nigeria about 10m US dollars per annum in Forex.
On his part, the Managing Director, Unilever West Africa, Carl Cruz, said, “Unilever is pleased to be part of this initiative in line with its localisation agenda to source raw materials locally in Nigeria. With our sustained investment in localisation, we have enhanced the capacity of partners to increase their production output in sorbitol and cassava starch. This has reduced our dependence on importation of raw materials for our local production and enabled us to generate employment for factory workers, agronomists, back-office support, harvesters, pruners and suppliers.”
Commenting on the development, the Managing Director of FCMB, Mrs Yemisi Edun, restated the commitment of the Bank to championing and supporting initiatives that would create wealth and fast-track national development across all sectors of the economy, especially in agribusiness.
Edun further stated that: “we are proud to finance the Sorbitol factory of Psaltry Limited and excited that the project has come on stream. This is yet another example of our commitment to promote the industrial development of Nigeria as well as create opportunities for indigenous companies to be globally competitive and take advantage of the African Continental Free Trade Area.
“In addition, this will help create employment, particularly for the youth and women in Iseyin town and its environs, improve income levels, the standard of living, and reduce rural-urban migration.”
Psaltry International Company Limited was founded in 2005 for the marketing of cassava produce, the elevation of farming business in rural areas and the production of food-grade starch and high-quality cassava flour from Cassava. The company established its 20 tons per day starch factory in 2012 and an additional production line of 30 tons per day capacity in 2015 to meet more customer demands and satisfaction.
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