NIRSAL backs over N100bn agric loans in 2025

Barbara Bako, Abuja.

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc says it approved credit guarantees of more than N100 billion for agricultural loans and investments in 2025, the highest annual figure recorded by the institution since inception.…

The guarantees enabled commercial banks and other financial institutions to extend credit to agribusiness value chains that would ordinarily fall outside their risk thresholds, NIRSAL said in Abuja on Monday.

The development reflects growing lender confidence in Nigeria’s agriculture sector, driven largely by NIRSAL’s risk-sharing frameworks and value-chain risk management tools.

NIRSAL’s Managing Director and Chief Executive Officer, Mr Sa’ad Hamidu, said the milestone highlights the effectiveness of structured partnerships with financial institutions and improved approaches to de-risking agricultural transactions.

He spoke at the 2nd edition of the MSME Finance and CEO Awards in Lagos, where NIRSAL emerged as MSME Agrifinance Enabler of the Year.

Read also:Troops capture Maiduguri mosque bombing mastermind

Hamidu, who was represented by the Regional Head, South, Business Development Group, Mr Akinola Baiyewu, said the institution remains focused on attracting viable partners and investments rather than pursuing recognition.

According to him, while significant capital exists within the financial system to transform agriculture, risk concerns across value chains continue to limit lending.

The N100 billion threshold achieved in 2025, he said, signals a shift from caution to increased participation by lenders, supported by NIRSAL’s credit risk guarantees and monitoring frameworks.

The institution noted that its partnerships supported activities across commodity exports, agro-processing, input supply, primary production, storage, warehousing and logistics.

NIRSAL also disclosed that it has signed 41 master agreements with financial institutions committed to financing agriculture and agribusiness nationwide.

In addition, the institution said it strengthened its role in mobilising alternative funding for the sector, particularly climate finance, as a Delivery Partner to the Green Climate Fund.

Looking ahead to 2026, NIRSAL said it plans to expand its finance facilitation activities, support climate-smart agriculture and improve resilience across Nigeria’s agribusiness ecosystem.