By Oluchi Omai – Abuja, Nigeria
In a significant stride toward revitalising Nigeria’s agricultural sector, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has announced the facilitation of 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.
The achievement, which represents nearly 25% of NIRSAL’s cumulative ₦270 billion facilitated to date, reflects a strategic turnaround under the leadership of its new Board and Executive Management. The timing is particularly critical, given the recent decline in bank lending to agriculture—from 6.18% of total lending in 2022 to 4.82% in 2024—alongside a slowdown in sectoral growth from 2.5% to 1.7% over the same period.
By deploying its signature value chain modelling tools, offering technical support to agribusinesses and financial institutions, and applying robust risk-sharing frameworks, NIRSAL has successfully restored lender confidence. This renewed trust has channelled fresh capital into key agricultural value chains, including grains, cocoa, shea, and livestock.
According to NIRSAL, over 32% of the ₦70 billion facilitated this year has directly supported value-added commodity exports, contributing to a positive trade balance for agriculture. Notably, agriculture’s share of bank lending has rebounded to 5.33% as of May 2025, signalling renewed interest from financial institutions. Two newly licensed banks have also entered the sector, leveraging NIRSAL’s frameworks to support their lending activities.
Hamidu expressed confidence in reaching NIRSAL’s ₦150 billion target for 2025, noting that the peak of the harvest season—when merchants typically seek credit for offtake and storage—is yet to come. He added that super agro-dealers are also expected to stock up on fertilisers and inputs ahead of the next planting cycle, presenting further opportunities for financing.
Beyond the headline figures, NIRSAL is reshaping the agricultural lending landscape through an integrated model that spans prospect identification, deal structuring, business advisory, and credit guarantees. This approach supports agribusinesses from loan origination to disbursement, enabling previously unbankable enterprises to access sustainable credit.
The organisation’s efforts have helped build a pipeline of emerging agribusinesses while enabling established firms to scale. Several borrowers who initially engaged NIRSAL have since transitioned into routine lending relationships with their banks, demonstrating the long-term sustainability of the NIRSAL model.
The ₦70 billion facilitated so far in 2025 is also a direct outcome of NIRSAL’s capacity-building initiatives. Over 1,100 bank staff have received targeted training on agricultural financing within NIRSAL’s risk-sharing framework, leading to increased loan approvals. Additionally, 450 agricultural value chain actors have been trained in areas such as feedlot management, commodity export, and climate finance.
Looking ahead, NIRSAL is developing the NIRSAL LandBank portal—a digital ecosystem connecting agricultural stakeholders from research and development to market access. The portal aims to provide data-driven insights for investors, policymakers, and development partners, enabling better risk assessment and informed decision-making.
Climate finance is another area of growing interest for NIRSAL. The organisation recently signed an agreement with the Rural Electrification Agency to provide off-grid power to production and processing clusters in rural areas. These efforts are expected to build resilience across agricultural value chains and support Nigeria’s ambition to become a $1 trillion economy.
Since its establishment, NIRSAL has remained committed to de-risking agricultural lending and proving that agriculture is both bankable and sustainable. Its 2025 performance signals not just recovery, but a new era of confidence for Nigeria’s farmers, financiers, and the broader economy.
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