NIRSAL Unlocked ₦100bn for Agribusiness in 2025
By Patience Ikpeme
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) is concluding 2025 with over ₦100 billion in approved credit guarantees in loans and investments.
This achievement marks the institution’s highest annual finance facilitation since its inception in 2013, signaling a transformative era of lender confidence and agribusiness growth.
This milestone provides a critical safety net for partner financial institutions, allowing them to extend credit to agricultural activities that traditionally fall outside their risk appetites.
Since 2013, NIRSAL’s cumulative efforts have seen the facilitation of over ₦290 billion, spanning the entire spectrum of primary production, processing, logistics, market development, and exports.
This financial bridge has created more than 520,000 jobs, boosted industrial capacity, and protected agricultural value through robust insurance frameworks. Beyond the numbers, the institution has touched over 3 million lives by supporting rural economies and eliminating the exploitation of smallholder farmers.
Central to NIRSAL’s success is its sophisticated risk-sharing model. To date, the institution has facilitated ₦298.49 billion in finance and issued 949 guarantees, supporting 251 agribusinesses while maintaining a non-performing loan rate of less than 0.8 percent.
This fiscal discipline is paired with extensive technical assistance, including the creation of over 20 agribusiness models and the training of 2,000 financial institution staff and 303 value chain actors.
Through its insurance advocacy, NIRSAL introduced five Index Insurance products and brought nine insurance firms on board. This effort resulted in 1.8 million policies issued and ₦5.2 billion in insurance payouts, alongside ₦4.6 billion in claims paid and ₦4.2 billion recovered.
Furthermore, the institution’s incentive mechanism provided $1.8 million in interest drawback payments to 386 obligors.
In light of these achievements, NIRSAL recently received the MSME Agrifinance Enabler of the Year Award at the 2nd Edition of the MSME Finance & CEO Awards held at the Civic Centre in Victoria Island, Lagos.
The ceremony celebrated NIRSAL’s ability to structure and de-risk agricultural transactions in an ecosystem often viewed as volatile.
Speaking at the award ceremony, NIRSAL’s Managing Director/CEO, Sa’ad Hamidu, stated that the accomplishment proves “the power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs.”
Represented by Akinola Baiyewu, NIRSAL’s Regional Head, South, Business Development Group, Hamidu added that the institution is “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.”
NIRSAL’s role as a facilitator rather than a lender has been pivotal in shifting commercial bank attitudes. While substantial capital exists in the Nigerian market, inherent risks often deter investors. The ₦100 billion milestone recorded this year reflects a major change from hesitation to increased confidence, driven by NIRSAL’s credit risk guarantees and robust management frameworks.
The institution has also signed 41 master agreements with counterparties committed to joint agribusiness financing. Looking toward global trends, NIRSAL has positioned itself as a Delivery Partner to the Green Climate Fund (GCF) for climate finance readiness. This partnership aims to secure sizeable climate finance inflows by developing nationwide capacity for sustainable agricultural practices.
Drawing from past experiences with smallholder financing schemes, NIRSAL refined its offerings for sub-national governments and private investors. These improvements include advanced protocols for farmer onboarding, geo-mapping, soil testing, and mechanization support to ensure better production outcomes.
As the institution prepares for the coming year, Sa’ad Hamidu remains optimistic about the trajectory of the sector. “Our journey is far from over,” the MD noted. “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. With the support of our Board of Directors and the dedication of our people, 2026 will see NIRSAL further scale its contribution towards agriculture transformation.”
