NIRSAL UNLOCKS ₦70BN IN AGRICULTURAL FINANCING IN 2025, STRENGTHENS SUPPORT FOR FOOD SECURITY AND ECONOMIC GROWTH


The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has announced a strong rebound in its operations, facilitating over ₦70 billion in commercial financing for agribusinesses as of the third quarter of 2025 — its most impressive annual performance since inception.

In operation since 2013, the 2025 result represents nearly a quarter of NIRSAL’s cumulative ₦270 billion facilitated for agriculture to date, underscoring the impact of its revamped strategy under a new Board and Executive Management.

The achievement comes at a crucial time for the agricultural sector, where bank lending had declined from 6.18% of aggregate lending in 2022 to 4.82% in 2024, with sectoral growth dropping from 2.5% to 1.7% in the same period. NIRSAL’s interventions — using value chain modelling, technical support, and its risk-sharing framework — have restored lender confidence, channeling fresh funds into key value chains such as grains, cocoa, shea, and livestock.

The results are tangible: agricultural lending has risen again to 5.33% as of May 2025, while over 32% of the facilitated funds directly support value-added exports. Two newly licensed banks have also entered the agricultural space, relying on NIRSAL’s frameworks to expand credit access.

Commenting on the milestone, NIRSAL Managing Director/CEO, Sa’ad Hamidu, said: “₦70 billion may appear modest compared to Nigeria’s total agricultural financing needs, but its significance is profound. It proves 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.”

Hamidu expressed confidence that NIRSAL will reach its ₦150 billion facilitation target for the year, noting that the main harvest season — a period of high credit demand — is yet to peak.

Beyond financing, NIRSAL continues to reshape the lending landscape through its integrated model, covering deal structuring, advisory services, and credit guarantees, helping agribusinesses once considered “unbankable” gain access to sustainable loans.

Many early beneficiaries have now “graduated” into routine lending relationships with their banks, demonstrating the long-term sustainability of NIRSAL’s model and its success in deepening financial institutions’ understanding of agribusiness.

The ₦70 billion milestone also reflects the outcome of NIRSAL’s capacity-building initiatives, including training for over 1,100 bank staff on agricultural financing and 450 value chain actors on feedlot management, commodity export, and climate finance.

Looking ahead, NIRSAL is developing the NIRSAL LandBank Portal — a digital ecosystem connecting agricultural stakeholders, from research institutions to markets, to enhance data-driven investment and policy decisions.

The institution is also deepening its participation in climate finance, partnering with the Rural Electrification Agency (REA) to deliver off-grid energy solutions to agricultural clusters across Nigeria.

Since its establishment, NIRSAL has remained committed to de-risking agricultural lending and promoting food security. Its 2025 performance marks a new era of confidence for Nigeria’s farmers, financiers, and the wider economy.

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