What's Happening?
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc, a non-bank financial institution owned by the Central Bank of Nigeria, has facilitated over N100 billion in loans
across Nigeria's agricultural value chain in 2025. This initiative aims to de-risk agricultural value chains, improve access to finance for agribusinesses, and strengthen lender confidence in the sector. NIRSAL's efforts were recognized with the MSME Agrifinance Enabler of the Year Award at the MSME Finance & CEO Awards. The institution's Managing Director, Mr. Sa’ad Hamidu, highlighted the importance of structured risk-sharing models and partnerships with financial institutions in achieving this milestone. NIRSAL's role is to facilitate finance rather than directly lend, addressing inherent risks that discourage lending in the agriculture sector.
Why It's Important?
This development is significant as it reflects a growing confidence in Nigeria's agriculture sector, driven by NIRSAL's credit risk guarantees and risk management frameworks. By facilitating substantial loans, NIRSAL is helping to unlock opportunities across the agriculture-to-market continuum, supporting activities such as commodity exports, agro-processing, and logistics. This initiative not only strengthens the agribusiness ecosystem but also promotes financial inclusion and economic growth in Nigeria. The success of NIRSAL's model could encourage more financial institutions to invest in agriculture, potentially transforming the sector and contributing to national economic development.
What's Next?
Looking ahead to 2026, NIRSAL plans to expand its finance facilitation efforts, support climate-smart agriculture, and enhance the competitiveness of Nigeria's agribusiness ecosystem. The institution aims to mobilize alternative financing into agricultural value chains and attract substantial climate finance inflows. NIRSAL is also focused on improving production outcomes through enhanced protocols for farmer onboarding, capacity building, and mechanization support. With continued innovation and partnerships, NIRSAL seeks to further scale its contribution to agricultural transformation in Nigeria.
