NIRSAL Unlocks ₦270 Billion in Agribusiness Loans to Strengthen Nigeria’s Food Security

Agriculture remains one of Nigeria’s most vital sectors, contributing about 24.6% to the nation’s GDP. Yet, government budgetary allocation to agriculture accounts for just about 1.32% of total expenditure. This gap has long been one of Nigeria’s biggest economic challenges — a situation where the sector that feeds the nation continues to receive minimal funding and limited policy attention.

To address this financing shortfall, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has stepped up as a leading force in agricultural finance and innovation. Established to make agriculture more bankable and attractive to investors, NIRSAL bridges the gap between financial institutions and agribusiness operators, transforming how the sector accesses capital.

Since its inception, NIRSAL has facilitated over ₦270 billion in agricultural lending from banks and other financial institutions. Impressively, its default rate stands at less than 1%, reflecting the efficiency and reliability of its model. The organization achieves this by providing risk guarantees, technical support, and value chain partnerships that allow banks to lend confidently while helping farmers and agribusinesses grow sustainably.

Under its renewed leadership, NIRSAL has refined its operational framework to address the structural bottlenecks that limit access to finance. The agency now focuses on integrated value chain financing, alternative finance facilitation, and risk-sharing models that connect producers, off-takers, and investors in profitable ecosystems. This strategy ensures that smallholder farmers, agritech startups, processors, and exporters can access more funding and grow their operations.

Recent data highlights the success of this approach. In the first three quarters of 2025, NIRSAL facilitated over ₦70 billion in commercial financing for agriculture — its strongest performance since establishment. The impact of this progress is already visible, as overall bank lending to the agricultural sector rose from 4.82% of total credit in 2024 to 5.33% by mid-2025. This growth signals a renewed confidence in agricultural lending, driven by structure, data, and transparency rather than government subsidies.

NIRSAL’s forward-looking agenda extends into digital and green finance. Through projects like the NIRSAL LandBank Portal and partnerships with the Rural Electrification Agency to provide off-grid power to agro-processing clusters, the organization is connecting agriculture with technology and sustainability. These initiatives are also positioning Nigeria to benefit from global opportunities in climate finance and green investment.

Beyond its role in financing, NIRSAL represents a policy model that could redefine Nigeria’s approach to economic development. By blending innovation with private-sector participation, it demonstrates that public budgets alone cannot drive growth — strategic institutions and risk-sharing mechanisms are essential.

As food inflation remains a pressing challenge and the government pushes toward a $1 trillion economy, NIRSAL’s contribution is more relevant than ever. By unlocking capital, building investor confidence, and driving sustainability, the agency continues to prove that agriculture can be both profitable and transformative.

If Nigeria hopes to secure food sufficiency, boost exports, and create inclusive prosperity, then expanding models like NIRSAL is essential. The agency’s success shows that innovation, financial discipline, and smart partnerships can bridge the gap where traditional government budgets fall short.