NIRSAL Unlocks ₦70bn for Agriculture in 2025

….Reinforcing Food Security and Economic Growth

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

This impressive milestone represents nearly a quarter of the ₦270 billion NIRSAL has enabled for agriculture and agribusiness since it began operations in 2013, marking a new chapter of growth under its reconstituted Board and Executive Management.

The turnaround comes at a crucial time for Nigeria’s agricultural sector, which has faced a decline in bank lending — dropping from 6.18% of total credit in 2022 to 4.82% in 2024 — and a slowdown in sectoral growth from 2.5% to 1.7%. Through its trademark value chain modeling, risk-sharing mechanisms, and technical support for agribusinesses and financial institutions, NIRSAL has succeeded in restoring lender confidence and channeling new funds into key value chains, including grains, cocoa, shea, and livestock.

Agriculture’s Rebound and Renewed Investor Confidence

The impact of these efforts is already visible. Agriculture’s share of bank lending rose to 5.33% by May 2025, showing renewed interest from commercial financiers. Two newly licensed banks have also entered the agricultural financing space, leveraging NIRSAL’s frameworks and contributing to the ₦70 billion facilitated so far this year.

According to the company, over 32% of the funds mobilized this year have directly supported value-added commodity exports, boosting both domestic production and Nigeria’s agricultural trade balance.

“Agriculture Can Be Commercially Financed” — NIRSAL CEO

Speaking on the development, NIRSAL’s Managing Director and Chief Executive Officer, Sa’ad Hamidu, described the achievement as “proof that agriculture can be commercially and sustainably financed.”

“₦70 billion may seem modest compared to the size of Nigeria’s agricultural financing needs, but its significance is profound,” Hamidu stated. “It demonstrates that with the right blend of capital, technical support, and risk mitigation, the sector can become more productive, resilient, and globally competitive.”

Hamidu expressed optimism that NIRSAL will meet its ₦150 billion target for 2025, noting that the most active period for agricultural credit—during harvest and input procurement—is still ahead.

“The opportunities to come give us every reason for optimism,” he added.

Building Capacity and Confidence in Agricultural Lending

Beyond financing, NIRSAL continues to reshape Nigeria’s agricultural lending landscape through its integrated model that covers prospect identification, deal structuring, business advisory, and credit guarantees. The institution’s approach ensures that agribusinesses—especially those previously considered high-risk—receive tailored support from loan origination through to disbursement.

So far, over 1,100 bank staff have benefited from NIRSAL’s capacity-building programs, gaining deeper understanding of agricultural lending within its risk-sharing framework. In addition, 450 value chain participants have been trained on areas such as feedlot management, commodity export, and climate finance.

NIRSAL says these programs are creating a pipeline of new agribusinesses, while helping established firms scale sustainably. Many past beneficiaries have now “graduated” into routine lending relationships with banks that are increasingly comfortable with agribusiness financing.

Digital Transformation and Climate Finance Frontiers

Looking ahead, NIRSAL is developing the LandBank Portal—a digital ecosystem that will connect agricultural stakeholders, from research to markets. The portal aims to offer data-driven insights for investors, policymakers, and development partners to identify opportunities, manage risks, and make informed investment decisions.

NIRSAL is also deepening its focus on climate finance, having recently partnered with the Rural Electrification Agency (REA) to deliver off-grid power solutions to rural production and processing clusters. The initiative is expected to enhance productivity, build resilience into agricultural value chains, and advance Nigeria’s goal of achieving a $1 trillion economy.

A Renewed Era for Nigerian Agriculture

Since its establishment in 2013, NIRSAL has remained committed to de-risking agricultural lending and proving that farming can be both bankable and sustainable. Its 2025 performance not only signals recovery but also heralds a new era of confidence and opportunity for Nigeria’s farmers, financiers, and the wider economy.

“Our work is far from done,” Hamidu emphasized. “But this year’s results show that Nigeria’s agriculture can attract serious investment and drive national growth—if we continue on this path.”