The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc has recorded a landmark achievement in 2025, approving credit guarantees that supported over ₦100 billion in agricultural and agribusiness financing the highest volume in its history.
Rather than lending directly, the institution said the guarantees were provided to partner financial institutions, enabling banks and investors to extend loans across a wide range of agricultural activities. These include commodity export businesses, agro-processing operations, input distribution, crop and livestock production, as well as storage, warehousing and logistics services.
NIRSAL described the milestone as evidence of a growing transformation in how Nigeria’s financial sector views agriculture, with lenders showing greater willingness to back value chains previously considered high-risk.
Speaking at an industry recognition event in Lagos, the Managing Director and Chief Executive Officer of NIRSAL Plc, Sa’ad Hamidu, said the performance highlights the effectiveness of structured risk mitigation and strong collaboration with financial institutions.
According to him, the progress reflects increasing confidence in Nigeria’s agribusiness ecosystem and the capacity of local entrepreneurs to deliver sustainable returns when supported by appropriate financing frameworks.
NIRSAL’s approach centres on reducing lending risks through credit guarantees, transaction advisory services and value-chain risk management tools, all designed to encourage banks to include agriculture more prominently in their loan portfolios.
Although Nigeria’s banking system holds substantial liquidity, agricultural financing has long been constrained by climate uncertainties, infrastructural gaps and market price fluctuations. NIRSAL said its interventions are helping to address these challenges by providing reassurance that allows lenders to scale their exposure.
To date, the company has executed 41 master risk-sharing agreements with banks and other financial partners to jointly finance agricultural ventures nationwide.
The organisation’s expanding impact was recently acknowledged at the second MSME Finance & CEO Awards in Lagos, where it received the MSME Agrifinance Enabler of the Year Award.
Receiving the award on behalf of the Managing Director, Akinola Baiyewu, a regional head at NIRSAL, noted that the company’s priority remains forging stronger partnerships rather than seeking recognition. He said the focus is on showcasing NIRSAL’s ability to support secure, profitable and sustainable investments throughout Nigeria’s agrifinance value chain.
NIRSAL Plc, a non-bank financial institution wholly owned by the Central Bank of Nigeria, is mandated to stimulate agricultural investment through innovative financing structures, technical assistance and risk-sharing mechanisms.
Beyond commercial bank lending, the institution is also working to attract alternative funding sources into agriculture, including climate finance. As a delivery partner to the Green Climate Fund’s readiness programmes, NIRSAL is implementing capacity-building initiatives nationwide and expects these efforts to unlock increased climate-related funding for climate-smart agriculture.
The company has also strengthened its engagement with state governments, private sector investors and cooperative-driven production clusters, applying lessons learned from earlier smallholder financing programmes.
Updated support frameworks now include improved farmer onboarding processes, skills development, geo-mapping, soil analysis and mechanisation support, all aimed at boosting productivity and lowering financing risks.
Looking ahead, NIRSAL said it will continue to scale its finance facilitation activities in 2026, while deepening efforts to enhance resilience and competitiveness across Nigeria’s agricultural value chains. Hamidu reaffirmed the institution’s commitment to innovation and partnership, noting that sustained collaboration remains key to unlocking long-term financing for the sector.