Nigeria’s agricultural finance sector has received a major boost as the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has announced that it has facilitated over ₦70 billion in commercial financing for agribusinesses as of the third quarter of 2025.

The institution has said it remains confident of meeting its ₦150 billion financing target for 2025, a projection that signals renewed investor trust and momentum in agricultural lending across Nigeria.

According to NIRSAL, the recent achievement accounts for nearly a quarter of its cumulative ₦270 billion facilitated since operations began in 2013. 

The organisation described this as “a reflection of the impact of NIRSAL’s revamped strategy under its new Board and Executive Management.”

The turnaround comes at a critical time when bank lending to agriculture has declined. 

Data from NIRSAL shows that bank credit to the sector fell from 6.18 per cent of total lending in 2022 to 4.82 per cent in 2024, while agricultural sectoral growth dropped from 2.5 per cent to 1.7 per cent in the same period.

NIRSAL attributes the resurgence to its signature value chain modelling tools, technical support to agribusinesses, and its risk-sharing frameworks, which have helped restore lender confidence and unlocked fresh capital into key value chains such as grains, cocoa, shea, and livestock.

The organisation reported a tangible rise in local production and improved trade performance. 

Over 32 per cent of the total facilitated sum directly supported value-added commodity exports, while agriculture’s share of bank lending has risen again to 5.33 per cent as of May 2025.

It added that two newly licensed banks have entered the agricultural finance space, relying on NIRSAL’s frameworks and contributing to the ₦70 billion already facilitated this year.

Speaking on the milestone, NIRSAL Managing Director and Chief Executive Officer, Sa’ad Hamidu, said the achievement demonstrates that sustainable agricultural financing is viable in Nigeria.

“₦70 billion may appear modest compared to the size of 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 added that the organisation is confident of achieving its ₦150 billion annual target, noting that the busiest period for agricultural financing, during harvest and input stocking, is yet to begin.

Beyond facilitating loans, NIRSAL said it is reshaping Nigeria’s agricultural lending ecosystem through an integrated model covering prospect identification, deal structuring, business advisory, and credit guarantees.

This model “handholds agribusinesses from loan origination to disbursement,” enabling them to transition from unbankable enterprises to sustainable borrowers. 

Several agribusinesses that once relied on NIRSAL’s intervention have now evolved into regular clients of commercial banks, reflecting deeper lender understanding of agricultural value chains.

“This proves that the NIRSAL model is a pathway to long-term sustainability in the agriculture sector,” the statement added.

The ₦70 billion facilitated so far stems from extensive capacity-building efforts across Nigeria’s financial institutions. 

NIRSAL trained over 1,100 bank staff on agricultural financing within its risk-sharing framework, boosting loan approvals. 

Additionally, 450 agricultural value chain participants received training on feedlot management, commodity export, and climate finance.

Looking ahead, NIRSAL is developing the NIRSAL LandBank Portal, a digital platform designed to connect stakeholders across the agricultural ecosystem, from research and development to markets. 

The portal will provide data-driven insights for investors, policymakers, and development partners, supporting risk reduction and informed decision-making.

It has also partnered with the Rural Electrification Agency (REA) to deliver off-grid power to production and processing clusters in rural areas, a move expected to improve climate resilience and support Nigeria’s ambition of building a $1 trillion economy.

Since its establishment, NIRSAL has maintained its mandate of de-risking agricultural lending and promoting access to finance. 

Its 2025 performance, the organisation said, signals not just recovery but “a new era of confidence for Nigeria’s farmers, financiers, and the wider economy.”

Source: The Nation News