NIRSAL Facilitates ₦70 Billion in Agribusiness Loans, Strengthening Nigeria’s Agricultural Financing in 2025

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has announced a major achievement in its mission to boost agricultural financing across the country. As of the third quarter of 2025, the institution has successfully facilitated over ₦70 billion in commercial credit for agribusinesses nationwide.

This marks NIRSAL’s strongest annual performance since its establishment and represents a major boost for Nigeria’s agricultural value chain, especially at a time when access to credit has become increasingly difficult for farmers and agribusiness operators.

Boosting Confidence in Agricultural Lending

NIRSAL Plc, a non-bank financial institution established in 2013, was created to transform Nigeria’s agricultural landscape by unlocking structured and affordable funding for businesses in the sector. The initiative is a product of collaboration between the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Food Security, and the Bankers’ Committee.

The ₦70 billion injection comes at a crucial time when commercial banks had been steadily reducing their exposure to the agricultural sector. Statistics show that the share of agriculture in total bank lending dropped from 6.18% in 2022 to 4.82% in 2024, contributing to slower sector growth.

Thanks to NIRSAL’s intervention, the trend is now reversing — with agriculture’s share of bank lending rising again to 5.33% as of May 2025.

Over 30% of Loans Directed Toward Export

According to NIRSAL’s Managing Director and Chief Executive Officer, Sa’ad Hamidu, about 32% of the total ₦70 billion facilitated so far has been directed toward value-added commodity exports, reflecting the growing focus on diversifying Nigeria’s foreign exchange earnings through agriculture.

Hamidu emphasized that while ₦70 billion may seem modest compared to the country’s total financing needs, it demonstrates that agriculture can attract sustainable commercial funding when backed by the right financial instruments, risk-sharing models, and technical support.

“This proves that agriculture is not just a developmental agenda but a viable investment space,” he stated. “We are confident that our new strategies will help us achieve our ₦150 billion target before the end of 2025.”

Strengthened by New Reforms and Strategic Partnerships

NIRSAL attributed the record achievement to its revamped operational strategy under new executive management. The new approach includes advanced value chain modeling, targeted technical assistance to banks and agribusinesses, and improved risk mitigation frameworks that have restored lender confidence in the sector.

Through these initiatives, NIRSAL has successfully channelled fresh capital into high-impact value chains, including grains, cocoa, shea, and livestock, driving both local production and export competitiveness.

Empowering Bankers and Agripreneurs

Beyond financing, NIRSAL has also invested heavily in capacity building to ensure long-term sustainability. Over 1,100 bank employees have undergone specialized training on agricultural lending under its risk-sharing framework, leading to increased loan approvals for agro-based businesses.

Additionally, more than 450 participants — including farmers, processors, and exporters — have been trained in feedlot management, commodity export processes, and climate finance. These initiatives are gradually enhancing technical competence and confidence across Nigeria’s agricultural ecosystem.

Introducing the NIRSAL LandBank Digital Portal

In a move to further enhance data-driven agricultural financing, NIRSAL is developing a new digital platform known as the NIRSAL LandBank Portal. This online ecosystem will connect key agricultural stakeholders — from researchers and investors to producers and policymakers — providing access to insights, project opportunities, and risk analysis tools.

The LandBank portal is also expected to attract climate finance investments, as NIRSAL continues to expand partnerships with green energy and sustainability-focused organizations.

Recently, the institution signed a partnership with the Rural Electrification Agency (REA) to deliver off-grid power solutions to agricultural processing hubs and production clusters in rural areas. This collaboration aligns with Nigeria’s goal of achieving a $1 trillion economy through inclusive growth and sustainable industrialization.

Building a Resilient Agricultural Economy

Through its consistent efforts, NIRSAL has facilitated a cumulative total of ₦270 billion in agribusiness financing since inception — a quarter of which was recorded in 2025 alone. The institution’s ongoing initiatives are not only reshaping the lending environment but also positioning Nigerian agriculture as a profitable investment sector for both local and foreign investors.

Bridging the gap between finance and food production, NIRSAL continues to play a pivotal role in driving agricultural growth, export competitiveness, and job creation in Nigeria’s rural economy.