NIRSAL Plc Boosts Agricultural Lending Through Credit Guarantees

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has demonstrated the effectiveness of credit guarantees in enhancing agricultural lending in Nigeria. Between 2025 and H1 2026, the average transaction size for agricultural credit facilities backed by NIRSAL increased from N2.93 billion to N3.94 billion.

Additionally, lenders utilizing the Credit Risk Guarantee expanded their credit to agribusinesses from N9.36 billion to N11.86 billion during the same period. Oladimeji Ladele Ladipo, head of strategy and support services at NIRSAL Plc, stated that this model allows lenders to gain familiarity with agricultural risks while borrowers build a repayment track record, leading to deeper financing relationships.

The objective is not to rely perpetually on guarantees but to reduce perceived risks and enhance private capital flows into productive sectors. The Central Bank of Nigeria's recent recapitalization program aims to strengthen the banking sector's capacity to support the economy.