The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc has announced a landmark achievement for the year 2025. The institution has approved credit guarantees exceeding ₦100 billion for agricultural loans and investments, marking its highest annual finance facilitation since it was established.
A Milestone for Agricultural Financing
This significant guarantee portfolio, which covers various segments of the agriculture and agribusiness value chains across Nigeria, has empowered partner financial institutions. It has enabled them to provide credit to projects they would typically consider too risky, thereby significantly boosting lender confidence in the nation's agricultural sector. NIRSAL stated that this record underscores its increasing success in reducing risks within agricultural value chains, enhancing access to finance, and promoting financial inclusion for agribusinesses.
In a testament to its impact, NIRSAL was honoured as the MSME Agrifinance Enabler of the Year at the 2nd MSME Finance and CEO Awards. The event took place at the Civic Centre on Victoria Island, Lagos, and celebrates innovation and excellence among institutions that improve access to finance for Nigeria's Micro, Small, and Medium Enterprises (MSMEs).
Leadership Insights and Strategic Focus
At the awards ceremony, NIRSAL's Managing Director and Chief Executive Officer, Mr. Sa’ad Hamidu, highlighted that the achievement demonstrates the effectiveness of structured risk-sharing models and robust partnerships with banks and other lenders. Represented by Mr. Akinola Baiyewu, Regional Head for the South in the Business Development Group, Hamidu emphasized that the institution's focus remains on creating tangible value rather than chasing accolades.
“Our goal is to draw the attention of stakeholders across the agrifinance value chain to NIRSAL’s value proposition for safe, profitable, and sustainable investments in agriculture,” he explained. The managing director noted that while there is substantial capital available to transform Nigerian agriculture, perceived risks have historically deterred lending. He attributed the shift in confidence to NIRSAL's credit risk guarantees and strong risk management frameworks.
Expanding Partnerships and Climate Finance
NIRSAL's collaborations have supported a wide range of activities, including commodity export, agro-processing, input supply, primary production, and logistics. The institution's technical support and monitoring protocols continue to unlock financing along the entire agriculture-to-market chain. To date, NIRSAL has signed 41 master agreements with financial institutions committed to co-financing agriculture.
Looking beyond traditional finance, NIRSAL also reported progress in mobilising alternative funding. It serves as a Delivery Partner to the Green Climate Fund (GCF) to prepare Nigeria for climate finance, expressing optimism about significant climate finance inflows in the near future.
The Road Ahead for 2026
As NIRSAL looks forward to 2026, its strategy includes expanding its finance facilitation efforts, promoting climate-smart agricultural practices, and strengthening the sector's overall resilience. “Our journey is far from over. We will continue to innovate, deepen partnerships, and scale solutions that unlock finance for Nigeria’s agriculture sector,” Hamidu affirmed.
Established by the Central Bank of Nigeria (CBN), NIRSAL Plc is a non-bank financial institution with a mandate to stimulate agricultural investment through risk-sharing, technical assistance, insurance, and innovative financing mechanisms.
