NIRSAL Plc has surpassed ₦100 billion in credit guarantees issued to Nigeria’s agricultural sector, marking a major milestone in efforts to expand access to finance and strengthen food production nationwide.
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), established by the Central Bank of Nigeria (CBN), was created to reduce the risks associated with agricultural lending and encourage commercial banks to finance farmers and agribusinesses. By providing credit guarantees, NIRSAL absorbs a significant portion of potential losses in the event of loan defaults, making agriculture more attractive to financial institutions.
Industry data show that NIRSAL typically covers between 50 and 75 per cent of the principal and interest on guaranteed loans. This risk-sharing structure has helped boost lenders’ confidence, resulting in increased credit flows across agricultural value chains, including crop production, livestock, processing, storage, and logistics.
The ₦100 billion milestone reflects a sharp acceleration in activity in the second half of 2025. Earlier in the year, the agency reported facilitating about ₦70 billion in financing, indicating a strong rebound in operations as Nigeria renewed its focus on boosting domestic food production and reducing reliance on imports.
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Beyond risk coverage, NIRSAL also deploys additional incentives to improve loan performance. These include the Interest Drawback Programme, which offers partial interest rebates to borrowers who repay on schedule, and extensive project monitoring. Through its Project Monitoring, Reporting, and Remediation Offices, the agency conducts on-site inspections to ensure funds are used for their intended agricultural purposes.
Analysts say the growing volume of guaranteed lending could have positive spillover effects on the economy, including improved food security, job creation, and more stable agricultural supply chains. Thousands of smallholder farmers and agribusiness operators are expected to benefit directly from the increased access to credit.
The achievement underscores the government’s broader strategy to diversify the economy away from oil by making agriculture a more bankable and sustainable sector for private investment
