The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has achieved a major milestone, facilitating over ₦70 billion in commercial financing for agribusinesses as of the third quarter of 2025.
This marks the organisation’s strongest annual performance since its inception in 2013.
This achievement represents nearly 25% of NIRSAL’s total ₦270 billion facilitated for agriculture to date, a result credited to its revamped strategy under a new Board and Executive Management.
Rebuilding Confidence in Agricultural Financing
The performance comes at a crucial time when bank lending to agriculture had declined – from 6.18% in 2022 to 4.82% in 2024 – while growth in the sector also slowed. Through its value chain modelling tools, technical support to agribusinesses, and risk-sharing frameworks, NIRSAL has restored lender confidence and channelled fresh capital into key value chains such as grains, cocoa, shea, and livestock.
As a result, agriculture’s share of total bank lending has rebounded to 5.33% as of May 2025, with two new banks entering the sector using NIRSAL’s frameworks. Over 32% of the ₦70 billion facilitated so far has directly supported value-added commodity exports, further boosting local production and trade balance.
A Message of Optimism
Commenting on the milestone, NIRSAL Managing Director/CEO, Sa’ad Hamidu, noted:
“₦70 billion may appear modest compared to the nation’s agricultural financing needs, but its significance is profound. It proves that agriculture can be commercially and sustainably financed. With the right mix of capital, technical support, and risk mitigation, the sector can become more productive, resilient, and globally competitive.”
Hamidu expressed confidence that NIRSAL would meet its ₦150 billion target for 2025, noting that additional opportunities would emerge during the peak harvest season when merchants and agro-dealers typically seek financing for offtake, storage, and inputs.
Reshaping the Lending Landscape
Beyond figures, NIRSAL is transforming how agriculture is financed in Nigeria. Its integrated model supports agribusinesses from loan origination to disbursement, combining prospect identification, deal structuring, advisory services, and credit guarantees.
This holistic support helps businesses once deemed “unbankable” gain access to sustainable credit. Many agribusinesses that began with NIRSAL-backed loans have since transitioned into independent lending relationships, as banks gain better understanding and comfort in financing the sector.
Empowering Banks and Value Chain Actors
The ₦70 billion facilitated so far stems from NIRSAL’s capacity-building initiatives. Over 1,100 bank staff have been trained in agricultural financing within NIRSAL’s risk-sharing framework – resulting in higher loan approvals. Similarly, 450 agricultural stakeholders have undergone training in feedlot management, commodity export, and climate finance, equipping them with practical knowledge for growth and sustainability.
Driving Innovation: The NIRSAL LandBank Portal
Looking ahead, NIRSAL is building a digital platform known as the NIRSAL LandBank Portal, designed to connect agricultural stakeholders – from research institutions to markets – through a data-driven ecosystem. This platform will provide insights for investors, policymakers, and development partners to identify opportunities, mitigate risks, and make informed investment decisions.
The LandBank portal will also serve as a hub for climate finance opportunities. NIRSAL recently signed an agreement with the Rural Electrification Agency to deliver off-grid power to rural production and processing clusters – an initiative aimed at enhancing resilience within the agricultural value chain and supporting Nigeria’s goal of achieving a $1 trillion economy.
A Renewed Era for Agricultural Finance
Since its establishment, NIRSAL has remained committed to de-risking agricultural lending and proving that agriculture can be both profitable and sustainable. Its 2025 results signal not just recovery, but a new era of confidence and growth for Nigeria’s farmers, financiers, and the wider economy.
For Enquiries:
Jude Nnadozie
Head, Corporate Communications, NIRSAL Plc
+234 (0) 907 000 1237
www.nirsal.com
