Emma Ujah, Abuja Bureau Chief
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc guaranteed over N100 billion agricultural and agribusiness loans in 2025.
The financial institution, established by the Central Bank of Nigeria (CBN) to boost the flow of credit to the sector,! disclosed this in a statement in Abuja, yesterday.
“NIRSAL Plc is closing 2025 with total approved credit guarantees for over N100 billion in loans and investments in agriculture and agribusinesses across Nigeria, enabling partner financial institutions to extend credit to value chain activities that would otherwise fall outside their risk appetites.
“This milestone, NIRSAL’s highest annual finance facilitated to date, demonstrates the institution’s continued success in de-risking agricultural value chains, improving access to finance for agribusinesses, strengthening lender confidence in Nigeria’s agriculture sector, and deepening financial inclusion,” it said.
The Managing Director (MD) of NIRSAL, Sa’ad Hamidu, was quoted as saying, “the accomplishment underscores the power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs.”
The MD added, “NIRSAL is focused on drawing the attention of potential partners across the agrifinance value chain to NIRSAL’s value proposition for safe, profitable, and sustainable investments in Nigeria’s agriculture sector.”
Growing Value Chains and Banks’ On-Balance Sheet Agro Portfolios
NIRSAL’s partnerships with commercial banks and other lending institutions, he said, supported critical activities across the agricultural value chain, including commodity export, agro-processing, input supply, primary production, storage, warehousing, and logistics.
On the other hand, the MD noted NIRSAL’s technical assistance programs, field monitoring, and project mapping protocols continue to unlock opportunities for actors across the agriculture-to-market continuum.
On the institution’s role as a de-risking institution and facilitator rather than a lender, he said that while substantial financial capital exists to transform Nigeria’s agriculture sector, the inherent risks in the value chains continue to discourage lending.
“The ₦100 billion milestone recorded this year therefore reflects a major shift—from hesitation to increased confidence—driven largely by NIRSAL’s credit risk guarantees and robust risk management frameworks, which reassure lenders and enable them to expand their investments in agriculture,” Hamidu said.
Partners and Financiers Reaffirm Confidence
The NIRSAL boss said Financial Institutions were increasingly relying on NIRSAL’s credit risk guarantees and value chain risk management tools for risk-mitigation, enabling them to scale up agricultural portfolios, optimise capital deployment, and meet both commercial and development objectives.
He said, “The 2025 results reflect deepening collaboration and growing understanding of NIRSAL’s finance facilitation model, and wider acceptance of its credit risk guarantee.
“To date, NIRSAL has signed 41 master agreements with counterparties committed to jointly financing agriculture and agribusiness in Nigeria.
“The institution also strengthened its strategic positioning for mobilizing alternative finance into agricultural value chains.
“As a Delivery Partner to the Green Climate Fund (GCF) for climate finance readiness, NIRSAL is delivering extensive capacity development programs nationwide and is optimistic that Nigeria will secure sizeable climate finance inflows in the near future.”
Commitment to Scaling Agriculture Production
Drawing from insights gained through past national and sub-national smallholder financing schemes, Hamidu said NIRSAL refined its program management offerings for sub-national governments, private agribusiness investors, and cooperative-led primary production clusters, with improved protocols for farmer onboarding, capacity-building, geo-mapping, soil testing, and mechanization support to enhance production outcomes.
Looking Ahead to 2026
As NIRSAL prepares for 2026, the MD said it remaind committed to expanding its finance facilitation footprint, supporting climate-smart agriculture, strengthening sectoral resilience, and enhancing the competitiveness of Nigeria’s agribusiness ecosystem.
“Our journey is far from over,” he said, adding, “In fact, it is only just beginning. We will continue to innovate, deepen partnerships, and scale solutions that reduce risks and unlock finance for Nigeria’s agriculture sector. With the support of our Board of Directors and the dedication of our people, 2026 will see NIRSAL further scale its contribution towards agriculture transformation.”
Loans guaranteed by NIRSAL were described as good portfolios recording as low as just 0.8 percent Non-Performing Loans.
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