Nigeria’s Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has unlocked ₦70 billion in commercial financing for the agricultural sector this year, its best lending performance in over a decade.
Reviving Agricultural Credit Access
Agricultural lending in Nigeria had been on a steady decline, falling from 6.18% in 2022 to 4.82% in 2024 as credit conditions tightened. By May 2025, NIRSAL’s initiatives lifted the figure to 5.33%, marking a significant recovery in agribusiness financing.
Strategic Support Across Value Chains
More than 32% of the ₦70 billion funding targets export-oriented commodities such as grains, cocoa, shea, and livestock. The organization says this approach strengthens Nigeria’s competitiveness in global markets while reinforcing the agricultural value chain.
Leadership Insight and Sector Impact
NIRSAL Managing Director, Sa’ad Hamidu, hailed the performance as proof that risk-sharing strategies can deliver sustainable results.
“₦70 billion may seem modest, but it demonstrates that viable and inclusive agricultural financing is achievable,” Hamidu noted.
He added that NIRSAL’s mix of technical assistance and risk mitigation tools has helped agribusinesses increase efficiency and output.
Ambitious Growth Target
Looking ahead, NIRSAL plans to scale lending to ₦150 billion by year’s end. “The harvest season naturally boosts demand for inputs and offtake financing,” Hamidu said, expressing confidence in surpassing previous lending levels.
Reforms and Capacity Building
A revamped strategy emphasizing value-chain modeling and bank training underpinned the gains. Over 1,100 bank staff have been trained in agricultural risk-sharing, improving loan approval rates. Similarly, 450 agribusiness operators received training in export readiness and climate finance.
To deepen sector knowledge, NIRSAL has expanded training programs on feedlot operations, commodity processing, and financial literacy laying the groundwork for sustained productivity. The institution’s ₦270 billion cumulative financing now reflects its growing national footprint.
Driving Digital and Green Innovation
As part of its modernization push, NIRSAL is developing the LandBank Portal — a digital hub designed to provide data-driven insights for investors, farmers, and policymakers. The tool aims to enhance transparency, reduce lending risks, and identify new agribusiness opportunities.
NIRSAL is also collaborating with the Rural Electrification Agency (REA) to deliver off-grid energy solutions in farming communities, integrating renewable power into agricultural operations.
Commitment to Inclusive Growth
The ₦70 billion milestone, NIRSAL says, reinforces its mission to boost productivity, job creation, and food security. By combining finance, technology, and capacity development, the institution is positioning Nigeria’s agricultural sector for long-term growth and sustainability in 2025 and beyond.
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