The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has reached a major milestone by enabling over ₦70 billion in commercial funding for agribusinesses by the third quarter of 2025. In a statement released on Wednesday, NIRSAL described this as its best annual performance to date and a turning point for agricultural finance in the country.
NIRSAL Plc, established in 2013, is a non-bank financial institution designed to boost agriculture by making finance more accessible and structured for businesses across the agricultural value chain. It was formed through a partnership involving the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Food Security, and the Bankers’ Committee.
This fresh injection of capital is timely, as bank lending to agriculture had been steadily dropping,from 6.18% of total lending in 2022 to 4.82% in 2024. During the same period, the sector’s growth rate declined from 2.5% to 1.7%. Thanks to NIRSAL’s intervention, agriculture’s share of bank loans rose again, reaching 5.33% by May 2025.
More than 32% of the facilitated funds went directly to support value-added agricultural exports. Speaking on the development, NIRSAL’s CEO, Sa’ad Hamidu, stressed the importance of the achievement. He said, “While ₦70 billion may seem small compared to the sector’s total financing needs, it proves that agriculture in Nigeria can be funded in a sustainable and commercially viable way.” He emphasized that with the right mix of financing, technical support, and risk protection, agriculture can become more competitive and resilient.
Hamidu also expressed confidence in meeting NIRSAL’s ₦150 billion target for 2025, noting that the peak season for financing,when merchants seek credit for storage and agro-dealers prepare for planting,is still ahead. “We’re optimistic that more opportunities lie ahead,” he added.
This achievement makes up nearly a quarter of the total ₦270 billion NIRSAL has facilitated since its inception. It reflects the success of a new strategy introduced by its revamped board and leadership. By focusing on tools like value chain modeling, customized support for financial institutions and agribusinesses, and enhanced risk-sharing systems, NIRSAL has been able to rebuild lender confidence and attract new investment into key value chains such as grains, cocoa, shea, and livestock.
Beyond just funding, NIRSAL has invested in training and capacity building. Over 1,100 bank staff have received training in agricultural financing, leading to a rise in loan approvals. Additionally, 450 agribusiness operators have been trained in areas like climate finance, feedlot management, and export processes.
To further support the sector, NIRSAL is launching a digital platform called the LandBank Portal,a hub for agricultural stakeholders that will provide data, insights, and tools for investors, policymakers, and partners to make smarter decisions and reduce risks.
NIRSAL is also exploring climate finance, recently partnering with the Rural Electrification Agency to deliver off-grid power to farming communities. These steps are part of its broader plan to make agriculture stronger, more sustainable, and a key driver of Nigeria’s journey toward a $1 trillion economy.
