- As partnership with financial institutions deepens
BY COBHAM NSA – The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) says over N100 billion is recorded as its total approved credit guarantees in agriculture and agribusinesses’ loans and investments across Nigeria in 2025.
According to the institution, positive developments in NIRSAL’s operational efficiency during the year under review enabled partner financial institutions to extend credit to value chain activities that would otherwise have fallen outside their risk appetites.
Clearly listed as NIRSAL’s highest annual finance facilitated to date, the management explained that this milestone 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.”
For its contributions to Nigeria’s economic growth, the institution bagged the MSME Agrifinance Enabler of the Year Award at the 2nd Edition of the MSME Finance & CEO Awards that took place recently in Victoria Island, Lagos.
Indeed, it was an occasion that celebrated innovation, resilience, and excellence in Nigeria’s MSME ecosystem, including NIRSAL’s ability to structure and de-risk agricultural transactions nationwide.
NIRSAL’s Managing Director and Chief Executive Officer, Sa’ad Hamidu, who spoke at the award ceremony, said the performance underscores “the power of structured risk-sharing models, strong partnerships with financial institutions, and the resilience of Nigeria’s agribusiness entrepreneurs.”
Hamidu said 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.”
Represented by Akinola Baiyewu, the Regional Head, South, Business Development Group, the NIRSAL Chief Executive said in growing value chains and banks’ on-balance sheet agro portfolios, its partnerships with commercial banks and other lending institutions effectively supported critical activities across the agricultural value chain.
He explained that the arrangement covers commodity export, agro-processing, input supply, primary production, storage, warehousing, and logistics, adding: “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.”
Also speaking on NIRSAL’s role as a de-risking institution and facilitator rather than a lender, the Managing Director said 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”, he said.
While addressing issues around partners and financiers’ confidence, Hamidu said 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.
For him, “The 2025 results reflect deepening collaboration and growing understanding of NIRSAL’s finance facilitation model, and wider acceptance of its credit risk guarantee”, noting that: “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.”
On commitment to scaling agriculture production across the country, Hamidu explained that given insights gained from 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.”
Ahead of the 2026 financial year, he said NIRSAL 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. 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”, the NIRSAL Chief Executive further assured.
