NIRSAL Guarantees Over ₦100 Billion in Agricultural Loans

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has guaranteed more than ₦100 billion in agricultural and agribusiness loans in 2025, marking its highest annual credit facilitation since inception.

The institution, created by the Central Bank of Nigeria to improve access to finance in the agriculture sector, disclosed the development in a statement issued in Abuja. According to NIRSAL, the credit guarantees supported loans and investments across diverse agricultural value chains nationwide, enabling financial institutions to fund projects that would ordinarily fall outside their risk tolerance.

NIRSAL stated that the milestone reflects significant progress in reducing risks within Nigeria’s agricultural value chains, strengthening lender confidence, expanding agribusiness financing, and deepening financial inclusion. The institution noted that the ₦100 billion figure represents its largest annual contribution to agricultural finance, underscoring growing acceptance of its risk-sharing and credit enhancement frameworks.

The Managing Director of NIRSAL, Sa’ad Hamidu, described the achievement as evidence of the effectiveness of structured risk-sharing models, strong collaboration with financial institutions, and the resilience of agribusiness operators across the country. He said the organisation remains focused on attracting more partners across the agricultural finance ecosystem by promoting safe, profitable, and sustainable investment opportunities in Nigeria’s agriculture sector.

According to Hamidu, NIRSAL’s partnerships with commercial banks and other lending institutions supported key segments of the agricultural value chain, including primary production, input supply, agro-processing, storage, warehousing, logistics, and commodity exports. He added that the institution’s technical assistance programmes, field monitoring systems, and project mapping frameworks continue to unlock financing opportunities from farm-level production through to market access.

He explained that although substantial capital exists within Nigeria’s financial system to transform agriculture, perceived risks within the sector have historically discouraged lending. NIRSAL’s role, he said, is to act as a de-risking and finance facilitation institution rather than a direct lender, helping to bridge the confidence gap between financiers and agribusiness operators.

Hamidu noted that the ₦100 billion credit guarantee milestone reflects a shift from caution to growing confidence among lenders, driven by NIRSAL’s credit risk guarantees and robust risk management structures. These frameworks, he said, reassure financial institutions and enable them to expand their agricultural loan portfolios while maintaining asset quality.

Financial institutions are increasingly relying on NIRSAL’s value chain risk management tools to mitigate exposure, optimise capital deployment, and meet both commercial and developmental objectives. He revealed that NIRSAL has signed 41 master agreements with partner institutions committed to jointly financing agriculture and agribusiness projects across Nigeria.

The organisation has also strengthened its positioning to mobilise alternative sources of finance into agricultural value chains. As a delivery partner to the Green Climate Fund for climate finance readiness, NIRSAL is implementing nationwide capacity-building programmes and expressed optimism that Nigeria will attract significant climate finance inflows in the near future.

Drawing from lessons gained through previous national and sub-national smallholder financing programmes, NIRSAL has refined its support for state governments, private agribusiness investors, and cooperative-led production clusters. These improvements include enhanced farmer onboarding systems, capacity development, geo-mapping, soil testing, and mechanisation support aimed at boosting productivity and improving outcomes across agricultural communities.

Looking ahead to 2026, NIRSAL said it remains committed to expanding its finance facilitation footprint, promoting climate-smart agriculture, strengthening sector resilience, and improving the competitiveness of Nigeria’s agribusiness ecosystem. Hamidu stated that the institution would continue to innovate, deepen partnerships, and scale solutions that reduce risks and unlock sustainable financing for the agriculture sector.

NIRSAL disclosed that loans guaranteed under its framework continue to perform strongly, with non-performing loan ratios reported as low as 0.8 percent, reinforcing confidence in its risk-sharing and portfolio management approach.