By Faridat Salifu
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has facilitated over ₦70 billion in commercial financing for agribusinesses as of the third quarter of 2025, marking its strongest annual performance since inception.
The institution announced the milestone in a statement released Tuesday, expressing confidence in achieving its ₦150 billion target by the end of the year a goal it says reflects renewed investor confidence in Nigeria’s agricultural sector. According to NIRSAL, the ₦70 billion facilitated this year represents nearly 25% of the cumulative ₦270 billion it has enabled since operations began in 2013.
“This milestone reflects the impact of NIRSAL’s revamped strategy under its new Board and Executive Management,” the organisation said.
The achievement comes at a time when agricultural lending had been on the decline. Between 2022 and 2024, agriculture’s share of total bank lending fell from 6.18% to 4.82%, while sectoral growth slowed from 2.5% to 1.7%. NIRSAL attributed the turnaround to its application of signature value chain modelling tools, technical support to agribusinesses, and risk-sharing frameworks that have helped restore lender confidence.
By deploying these tools and offering structured support, NIRSAL said it has channelled fresh capital into key agricultural value chains including grains, cocoa, shea, and livestock.
The organisation added that this financing surge has contributed to increased local production and a positive trade balance for agricultural commodities. Over 32% of the facilitated funds reportedly supported value-added agricultural exports. As of May 2025, agriculture’s share of bank lending had climbed to 5.33%, indicating renewed interest from financiers.
Two newly licensed banks have also entered the agricultural finance space using NIRSAL’s frameworks, contributing to the ₦70 billion already facilitated this year.
Speaking on the recent development, NIRSAL Managing Director and CEO, Sa’ad Hamidu, said the result demonstrates the viability of sustainable agricultural financing in Nigeria. “₦70 billion may seem modest given the size of Nigeria’s agricultural financing needs, but the significance is profound,” Hamidu 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.”
He noted that the organisation remains optimistic about reaching its ₦150 billion target, especially as the peak season for agricultural financing which includes harvest-related lending and pre-planting input financing is yet to begin. “The busiest season is yet to come. This gives us every reason for optimism,” he added.
NIRSAL also stated that beyond facilitating loans, it is reshaping the agricultural lending ecosystem through an integrated model that includes prospect identification, deal structuring, business advisory, and credit guarantees.
This model supports agribusinesses from loan origination to disbursement, helping them transition from unbankable enterprises to sustainable borrowers.
According to recent statement, many agribusinesses that once depended on NIRSAL’s support have now become regular clients of commercial banks, as financial institutions gain greater familiarity with agricultural value chains and confidence in financing them. “This proves that the NIRSAL model is a pathway to long-term sustainability in the agriculture sector,” the organisation said.
The ₦70 billion performance also stems from NIRSAL’s extensive capacity-building efforts. Over 1,100 bank staff have been trained to better understand agricultural financing within NIRSAL’s risk-sharing framework, resulting in increased loan approvals.
Additionally, 450 agricultural value chain participants have been trained in areas such as feedlot management, commodity exports, and climate finance interventions expected to deliver long-term benefits for the sector.
Looking ahead, NIRSAL is developing a digital platform called the LandBank Portal to connect stakeholders across the agricultural value chain from research and development to market access.
The portal will offer data-driven insights to investors, policymakers, and development partners to help identify opportunities, reduce risk, and make informed decisions.
The organisation also recently signed a partnership with the Rural Electrification Agency (REA) to deliver off-grid power to rural production and processing clusters. The initiative is expected to enhance value chain resilience and support Nigeria’s broader ambition of building a $1 trillion economy.
Since its establishment, NIRSAL has remained focused on de-risking agricultural lending, expanding access to finance, and demonstrating that agriculture in Nigeria is both bankable and sustainable. The 2025 performance, it said, marks not just recovery but “a new era of confidence for Nigeria’s farmers, financiers, and the wider economy.”