The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc has announced it will conclude 2025 having facilitated credit guarantees exceeding N100 billion for loans and investments in Nigeria’s agricultural sector. This significant financial backing enables partner financial institutions to extend credit to vital agricultural value chain activities that might otherwise be deemed too risky.
This milestone represents the highest annual finance NIRSAL has ever facilitated, underscoring its successful strategy in mitigating risks within agricultural value chains. The initiative aims to improve access to finance for agribusinesses, bolster lender confidence in the Nigerian agriculture industry, and promote greater financial inclusion across the nation.
In recognition of its achievements, NIRSAL received the MSME Agrifinance Enabler of the Year Award at the 2nd Edition of the MSME Finance & CEO Awards in Lagos. The award ceremony highlighted innovation and excellence within Nigeria’s Micro, Small, and Medium-sized Enterprises (MSME) sector.
NIRSAL’s Managing Director/CEO, Sa’ad Hamidu, attributed this success to “the power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs.” He emphasized that the organization’s focus remains on showcasing its value proposition for secure and profitable agricultural investments.
The institution’s collaborations with commercial banks and other lenders have supported a wide array of agricultural activities. These include commodity export, agro-processing, the supply of essential inputs, primary production, and crucial services like storage, warehousing, and logistics.
Furthermore, NIRSAL’s technical assistance programs, rigorous field monitoring, and project mapping protocols actively identify and unlock new opportunities for stakeholders involved in the entire agriculture-to-market spectrum. The organization positions itself as a de-risking agent and facilitator, rather than a direct lender, addressing the critical barrier of perceived risk that often deters investment in the sector.
While substantial capital is available to drive agricultural transformation in Nigeria, the inherent risks associated with various stages of the value chain have historically discouraged traditional lending. NIRSAL’s intervention directly addresses this challenge by providing a safety net for financial institutions, thereby encouraging greater capital flow into the sector.
The success of NIRSAL’s model is crucial for the growth and modernization of Nigeria’s agriculture, a sector vital for food security and economic development. By de-risking investments, NIRSAL is paving the way for increased participation and sustainability within the agribusiness landscape.
