• Scheme helps banks finance farming, processing and exports deemed too risky
  

• Agriculture accounts for just 3.95% of private sector bank lending
  

• Agency plans expansion in 2026, including climate finance

Nigeria’s public agency NIRSAL said on Thursday it guaranteed more than 100 billion naira ($69 million) in loans and investments for agriculture and agribusiness in 2025, its highest annual total on record.

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending said the guarantees enabled partner banks and financial institutions to finance segments of the agricultural value chain previously considered too risky.

NIRSAL was recognised at the second MSME Finance & CEO Awards in Lagos, where it received the “Agricultural MSMEs Finance Facilitator of the Year” award. Managing Director Sa’ad Hamidu said the recognition underscored the effectiveness of structured risk-sharing models and the importance of partnerships with financial institutions.

The guarantees covered activities ranging from farm production to agro-processing, as well as storage, logistics and exports. NIRSAL said it does not lend directly but facilitates access to credit, noting that financing for the sector remains limited.

Agriculture accounted for just 3.95% of bank credit to Nigeria’s private sector as of September 2025, while only 7% of farming communities reported having received bank loans, according to official data.

NIRSAL said it has signed 41 master agreements with partner financial institutions and plans to scale up its activities in 2026, including by tapping climate finance.

Fiacre E. Kakpo