The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc said it approved credit guarantees covering more than ₦100 billion in loans and investments for agriculture and agribusiness in 2025, its highest annual total to date, as lenders increasingly lean on risk-sharing tools to expand exposure to a sector long viewed as too volatile.
The guarantees, which back loans extended by partner financial institutions rather than direct lending by NIRSAL, helped unlock financing for activities spanning commodity exports, agro-processing, input supply, primary production, storage, warehousing and logistics.
The institution said the milestone reflects a shift among banks from caution to growing confidence in Nigeria’s agricultural value chains.
“This accomplishment underscores the power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs,” Sa’ad Hamidu, Managing Director and Chief Executive Officer said at an industry awards ceremony in Lagos.
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NIRSAL’s model focuses on de-risking transactions through credit guarantees, technical assistance and value-chain risk management frameworks, aimed at encouraging banks to carry agricultural exposures on their balance sheets.
While significant capital exists within Nigeria’s financial system, lenders have historically limited farm-sector lending due to weather risks, logistics bottlenecks and price volatility.
The ₦100 billion benchmark marks “a major shift—from hesitation to increased confidence,” Hamidu said, as guarantees reassure lenders and allow them to scale portfolios tied to food production and processing.
The company has now signed 41 master agreements with banks and other counterparties committed to jointly financing agriculture and agribusiness across the country.
NIRSAL’s growing role in the sector was recognised with the Micro Small and Medium Enterprise (MSME) Agrifinance Enabler of the Year Award at the second MSME Finance & CEO Awards in Lagos.
Representing the CEO, Akinola Baiyewu, regional head said the company’s focus remains on expanding partnerships rather than accolades. “We are not chasing after awards, but is focused on drawing the attention of potential partners across the agrifinance value chain to NIRSAL’s value proposition for safe, profitable, and sustainable investments in Nigeria’s agriculture sector,” he said.
NIRSAL Plc is a non-bank financial institution wholly owned by the Central Bank of Nigeria, mandated to use risk-sharing frameworks, technical assistance and innovative financing models to stimulate investment and productivity in the country’s agribusiness ecosystem.
Beyond domestic bank lending, NIRSAL is positioning itself to mobilise alternative sources of capital into agriculture, including climate finance.
As a delivery partner to the Green Climate Fund for readiness programs, it is running nationwide capacity-building initiatives and says it expects Nigeria to secure larger climate-related inflows to support climate-smart agriculture.
The institution has also refined its support for sub-national governments, private agribusiness investors and cooperative-led production clusters, drawing on lessons from past smallholder financing schemes.
New protocols cover farmer onboarding, capacity building, geo-mapping, soil testing and mechanisation, with the aim of lifting yields and reducing execution risks for financiers.
Looking ahead to 2026, NIRSAL said it plans to expand its finance facilitation footprint while deepening work on resilience and competitiveness across agricultural value chains. “Our journey is far from over,” Hamidu said Sunday in a statement. “In fact, it is only just beginning. We will continue to innovate, deepen partnerships, and scale solutions that reduce risks and unlock finance for Nigeria’s agriculture sector.”
