By Anita Dennis
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has announced that it has facilitated over N70 billion in commercial financing for agribusinesses as of the third quarter of 2025, marking its strongest performance since inception.
In a recent statement, NIRSAL described the milestone as a turning point for agricultural financing in Nigeria, coming at a time when credit to the sector had declined sharply in recent years.
Established in 2013 as a collaboration between the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Food Security, and the Bankers’ Committee, NIRSAL was designed to de-risk and attract private-sector funding into agriculture.
According to the institution, its latest intervention has helped reverse the downward trend in agricultural lending, which had fallen from 6.18 percent of aggregate bank lending in 2022 to 4.82 percent in 2024. As of May 2025, agriculture’s share of total bank credit had climbed to 5.33 percent, signalling renewed confidence in the sector.
Over 32 percent of the N70bn facilitated so far went directly into value-added commodity exports, reflecting NIRSAL’s drive to enhance Nigeria’s participation in global agricultural trade.
NIRSAL’s Managing Director and Chief Executive Officer, Mr. Sa’ad Hamidu, welcomed the achievement as proof that agriculture can attract sustainable commercial financing.
“N70bn may appear modest compared to Nigeria’s total agricultural financing needs, but its significance is profound,” Mr. Hamidu said. “It demonstrates that agriculture can be commercially and sustainably financed. With the right mix of capital, technical support, and risk mitigation, the sector can be more productive, resilient, and globally competitive.”
He expressed optimism that NIRSAL would hit its N150bn facilitation target by year-end, noting that more lending activities were expected during the harvest and pre-planting periods when merchants and agro-dealers typically seek credit.
The achievement, which represents nearly a quarter of NIRSAL’s cumulative N270bn in facilitated credit to date, was attributed to the revamped strategy introduced by the institution’s new Board and Executive Management.
NIRSAL explained that it has enhanced value chain modelling, strengthened its technical support for agribusinesses, and expanded risk-sharing frameworks, helping to channel fresh financing into key value chains such as grains, cocoa, shea, and livestock.
Beyond the funding numbers, the institution has also intensified capacity building to sustain the momentum. It disclosed that over 1,100 bank staff have been trained to improve their understanding of agricultural finance within NIRSAL’s risk-sharing model, resulting in increased loan approvals.
Similarly, 450 agricultural value chain actors have been trained in feedlot management, commodity export, and climate finance, as part of efforts to strengthen sectoral capacity and confidence.
Looking ahead, NIRSAL said it is developing a digital ecosystem known as the NIRSAL LandBank Portal, which will serve as a data-driven platform connecting stakeholders across research, production, and markets.
“The LandBank Portal will enable investors, policymakers, and development partners to identify opportunities, reduce risks, and make informed decisions,” the statement said.
The institution also revealed plans to leverage climate finance as an additional funding stream, citing a recent agreement with the Rural Electrification Agency (REA) to provide off-grid power to production and processing clusters in rural communities.
According to NIRSAL, these interventions are part of its long-term vision to build resilience into Nigeria’s agricultural value chain and support the nation’s journey toward a $1 trillion economy.
