On October 8, 2025, Nigeria’s Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) announced N70 billion in commercial loans for agribusiness.
This marks the strongest yearly performance since 2013, reversing a lending slump.
Overcoming Lending Challenges
Agricultural bank loans dropped from 6.18% in 2022 to 4.82% in 2024, with sector growth slowing to 1.7%. NIRSAL’s efforts lifted the share to 5.33% by May 2025, signaling a turnaround.
Strategic Value Chain Support
Over 32% of the N70 billion targets commodity exports. Funds flow to grains, cocoa, shea, and livestock chains.
Thus, NIRSAL fosters resilience and global competitiveness in Nigeria’s agriculture.
CEO Highlights Impact
Managing Director Sa’ad Hamidu praised the achievement. “N70 billion is modest but proves sustainable financing is possible,” he said.
With technical aid and risk tools, agribusinesses gain productivity.
Optimism for Full Target
Hamidu is confident in reaching N150 billion for 2025. “Harvest season brings more demand for offtake and inputs,” he noted. This will further accelerate agricultural lending growth.
Revamped Approach Succeeds
New board strategies, including value chain modeling and bank training, drove results. Over 1,100 bankers learned risk-sharing, increasing loan approvals.
Thus, 450 value chain actors trained in export and climate finance.
Capacity Building Expands
NIRSAL’s trainings cover feedlot management and commodity handling. These build confidence, ensuring long-term sector vitality.
The institution’s cumulative N270 billion facilitated underscores sustained impact.
Digital Innovation Ahead
NIRSAL plans the LandBank Portal, a digital ecosystem for stakeholders. It offers data insights for investors and policymakers. Thus, it aids opportunity spotting and risk reduction.
Climate Finance Focus
NIRSAL partners with the Rural Electrification Agency for off-grid power in rural clusters. This enhances resilience, supporting Nigeria’s $1 trillion economy goal through green agriculture.
Future Vision
The N70 billion milestone reflects NIRSAL’s commitment to transformation. By blending finance, training, and innovation, it empowers farmers and businesses.
Nigeria’s agriculture stands poised for expansion in 2025.
Broader Economic Role
NIRSAL’s work counters unemployment and boosts food security. With rising lending shares, the sector drives growth. The institution’s strategies ensure inclusive, sustainable development nationwide.
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