NIRSAL Approves N100bn Credit to Boost Agriculture in 2025

By Oluwakemi Kindness

The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), says it closed 2025 with a record of N100 billion in approved credit guarantees for agricultural loans and investments across the country.

Managing Director of NIRSAL, Sa’ad Hamidu, described the figure as the institution’s highest annual finance facilitation since inception, noting that it reflects growing confidence in agriculture as a viable investment sector.

Hamidu said the achievement was driven by effective risk-sharing frameworks, strong collaboration with financial institutions, and the resilience of agribusiness operators.

“The power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs made this milestone possible,” he said.

The credit guarantees have enabled banks and other financial institutions to extend loans to farmers and agribusinesses, improving access to finance across key agricultural value chains.

These include commodity exports, agro-processing, input supply, primary production, storage, warehousing and logistics.

NIRSAL said the intervention is expected to boost agricultural production, strengthen lender confidence and unlock more investment opportunities within the sector.

In recognition of its contributions, the agency was named MSME Agrifinance Enabler of the Year at the 2nd MSME Finance and CEO Awards held in Lagos.

Represented at the event by Akinola Baiyewu, Regional Head, South, Business Development Group, Hamidu said the award reflects the effectiveness of NIRSAL’s model in reducing risks associated with agricultural financing.

“The recognition is not our goal, but it underscores the impact of our work in de-risking agricultural transactions and attracting partners across the agrifinance value chain,” he said.

According to NIRSAL, financial institutions are increasingly relying on its credit risk guarantees and value chain risk management tools to expand their agricultural loan portfolios, deploy capital more efficiently and achieve both commercial and development outcomes.

The agency said it has so far signed 41 master agreements with partner institutions committed to jointly financing agriculture and agribusiness in Nigeria.

Beyond financial guarantees, NIRSAL has also supported smallholder farmers and cooperatives through onboarding, capacity building, geo-mapping, soil testing and mechanisation support aimed at improving productivity.

The institution also serves as a Delivery Partner to the Green Climate Fund (GCF), supporting Nigeria’s efforts to access climate finance for climate-smart agricultural initiatives.

Looking ahead to 2026, Hamidu said NIRSAL plans to expand its finance facilitation activities, deepen support for climate-smart agriculture and strengthen resilience across the agricultural sector.

“Our journey is far from over. We will continue to innovate, deepen partnerships and scale solutions that reduce risks and unlock finance for Nigeria’s agriculture sector,” he said.