NIRSAL guarantees over N100bn agric loans in 2025, deepens partnership with financial institutions
Orisemeke Benjamin
NIRSAL Plc say its 2025 total approved credit guarantees for over N100 billion in loans and investments in agriculture and agribusinesses across Nigeria.
According to NIRSAL, the guarantees enabled partner financial institutions to extend credit to value chain activities that would otherwise fall outside its risk appetite.NIRSAL Plc is a non-bank financial institution wholly owned by the Central Bank of Nigeria (CBN). It leverages risk-sharing frameworks, technical assistance, insurance, and innovative financing models to stimulate agricultural investment, enhance productivity, and strengthen Nigeria’s agribusiness ecosystem.
This milestone, NIRSAL’s highest annual finance facilitated to date, demonstrates the institution’s continued success in de-risking agricultural value chains, improving access to finance for agribusinesses, strengthening lender confidence in Nigeria’s agriculture sector, and deepening financial inclusion.
In recognition of its efforts, NIRSAL received the MSME Agrifinance Enabler of the Year Award at the 2nd Edition of the MSME Finance & CEO Awards held at the Civic Centre, Victoria Island, Lagos. The event celebrated innovation, resilience, and excellence in Nigeria’s MSME ecosystem, including NIRSAL’s ability to structure and de-risk agricultural transactions.
Speaking at the award ceremony, NIRSAL’s Managing Director/CEO, Sa’ad Hamidu, noted that the accomplishment underscores “the power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs.”
The MD, represented by Akinola Baiyewu, NIRSAL’s Regional Head, South, Business Development Group, 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.”
Growing value chains and banks’ on-balance sheet agro portfolios
NIRSAL’s partnerships with commercial banks and other lending institutions supported critical activities across the agricultural value chain, including commodity export, agro-processing, input supply, primary production, storage, warehousing, and logistics. On the other hand, its technical assistance programs, field monitoring, and project mapping protocols continue to unlock opportunities for actors across the agriculture-to-market continuum.
On the institution’s role as a de-risking institution and facilitator rather than a lender, the Managing Director noted that while substantial financial capital exists to transform Nigeria’s agriculture sector, the inherent risks in the value chains continue to discourage lending. The ₦100 billion milestone recorded this year therefore reflects a major shift—from hesitation to increased confidence—driven largely by NIRSAL’s credit risk guarantees and robust risk management frameworks, which reassure lenders and enable them to expand their investments in agriculture.
Partners and financiers reaffirm confidence
Financial Institutions are increasingly relying on NIRSAL’s credit risk guarantees and value chain risk management tools for risk-mitigation, enabling them to scale up agricultural portfolios, optimise capital deployment, and meet both commercial and development objectives.
The 2025 results reflect deepening collaboration and growing understanding of NIRSAL’s finance facilitation model, and wider acceptance of its credit risk guarantee. To date, NIRSAL has signed 41 master agreements with counterparties committed to jointly financing agriculture and agribusiness in Nigeria.
The institution also strengthened its strategic positioning for mobilizing alternative finance into agricultural value chains. As a Delivery Partner to the Green Climate Fund (GCF) for climate finance readiness, NIRSAL is delivering extensive capacity development programs nationwide and is optimistic that Nigeria will secure sizeable climate finance inflows in the near future.
Commitment to scaling agriculture production
Drawing from insights gained through past national and sub-national smallholder financing schemes, NIRSAL refined its program management offerings for sub-national governments, private agribusiness investors, and cooperative-led primary production clusters, with improved protocols for farmer onboarding, capacity-building, geo-mapping, soil testing, and mechanization support to enhance production outcomes.
Looking ahead to 2026
As NIRSAL prepares for 2026, it remains committed to expanding its finance facilitation footprint, supporting climate-smart agriculture, strengthening sectoral resilience, and enhancing the competitiveness of Nigeria’s agribusiness ecosystem.
“Our journey is far from over,” the MD affirmed. “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.”
