Nigeria Sees Surge in Agricultural Lending to 5.33% in May 2025 - NIRSAL Boosts Financing

In May 2025, bank lending to agriculture in Nigeria increased to 5.33%, marking a positive shift after a decline. The Nigeria Risk Sharing System for Agricultural Lending (NIRSAL) played a key role in this uptick by facilitating N70 billion in commercial financing for agribusiness.

This marked the strongest annual performance since NIRSAL's inception in 2013, with a total of N270 billion mobilized for agriculture to date. Despite the progress, structural challenges remain as lending volumes are still below the needed levels for sector transformation.

The renewed interest in agricultural lending is partly attributed to NIRSAL's framework providing technical support to reduce default risks and enhance the bankability of agribusiness.