by: ARINZE OKORO
NIRSAL’s Record-Breaking Agricultural Financing
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has achieved a historic milestone, facilitating over ₦70 billion in commercial financing for agribusinesses as of the third quarter of 2025.
According to a statement issued on Wednesday, NIRSAL described this accomplishment as its strongest annual performance since inception, marking a major turnaround in Nigeria’s agricultural finance ecosystem. Established in 2013, NIRSAL Plc is a non-bank financial institution created through a partnership among the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Food Security, and the Bankers’ Committee. The institution was designed to transform Nigeria’s agricultural sector by unlocking affordable, structured finance for agribusinesses across the value chain.
The fresh injection of capital is particularly timely. Over the past few years, bank lending to agriculture had been declining, dropping from 6.18% of total lending in 2022 to 4.82% in 2024. This contraction mirrored a reduction in sectoral growth from 2.5% to 1.7% during the same period. However, NIRSAL’s interventions have reversed this downward trend, raising agriculture’s share of bank lending to 5.33% as of May 2025.
In addition, the organization disclosed that 32% of the ₦70 billion facilitated this year directly supported value-added commodity exports, further demonstrating agriculture’s growing potential as a driver of Nigeria’s non-oil export base.
Strategic Impact and Leadership Outlook
Speaking on the achievement, NIRSAL’s Managing Director and Chief Executive Officer, Sa’ad Hamidu, described the development as a significant proof of concept for the agricultural sector.
“₦70 billion may appear modest compared to Nigeria’s agricultural financing needs, but its significance is profound,” he said. “It proves that agriculture can be commercially and sustainably financed. With the right blend of capital, technical support, and risk mitigation, the sector can become more productive, resilient, and globally competitive.”
Hamidu also expressed optimism about meeting NIRSAL’s ₦150 billion target for 2025, noting that the peak harvest and planting seasons are still ahead—periods that typically see heightened credit demand from merchants, input suppliers, and agro-dealers.
This landmark achievement, representing about a quarter of NIRSAL’s cumulative ₦270 billion facilitated to date, is credited to the revamped strategy introduced by its new Board and Executive Management.
Under the new strategy, NIRSAL has:
- Implemented value chain modelling tools to better identify and support critical agricultural segments such as grains, cocoa, shea, and livestock;
- Delivered targeted technical support to agribusinesses and financial institutions; and
- Strengthened risk-sharing frameworks to rebuild lender confidence and attract new investment.
These reforms have restored trust between banks and the agricultural sector, channeling fresh funds into productive ventures and expanding opportunities across rural and export-oriented agribusinesses.
Capacity Building, Innovation, and Climate Resilience
Beyond financing, NIRSAL has made major strides in capacity development to ensure sustainability within agricultural lending. The organization has trained over 1,100 bank staff through specialized workshops on agricultural financing and risk-sharing mechanisms, resulting in a measurable increase in loan approvals.
Furthermore, 450 value chain actors have benefited from training programs covering feedlot management, commodity export, and climate finance. These initiatives aim to strengthen the operational capacity and confidence of agribusiness stakeholders, enhancing productivity and sectoral competitiveness.
To drive innovation and efficiency, NIRSAL is developing the NIRSAL LandBank Portal—a digital ecosystem that will connect agricultural stakeholders from research institutions and investors to processors and markets. The portal will provide data-driven insights for investors, policymakers, and development partners, helping to identify opportunities, reduce risks, and enable informed decision-making across the agricultural value chain.
In addition, NIRSAL is intensifying efforts to leverage climate finance and promote environmental sustainability. The institution recently signed a memorandum of understanding with the Rural Electrification Agency (REA) to provide off-grid power solutions for rural production and processing clusters. This partnership aims to improve productivity, reduce post-harvest losses, and enhance resilience to climate-related shocks.
NIRSAL views these efforts as part of a broader mission to support Nigeria’s ambition of building a $1 trillion economy, anchored on sustainable agricultural growth. By aligning financial innovation with capacity building and climate adaptation, NIRSAL is not only strengthening the nation’s food security but also positioning agribusiness as a central pillar of national economic development.
In conclusion, the facilitation of ₦70 billion in commercial credit underscores NIRSAL’s role as a catalyst for agricultural transformation. Its strategic interventions continue to inspire confidence, empower value chain actors, and reinforce agriculture’s potential as a viable, profitable, and globally competitive sector for Nigeria’s future prosperity.
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