NIRSAL Guarantees Over N100 Billion in Agricultural Loans

The Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) reported that its Credit Risk Guarantee scheme backed agricultural loans exceeding N100 billion in 2025, with guarantees in 2026 already surpassing this total. This announcement was made during a capacity-building masterclass organized with the African Rural and Agricultural Credit Association (AFRACA) and other partners.

NIRSAL's Managing Director and Chief Executive Officer, Sa'ad Hamidu, represented by Executive Director of Operations Ewaen Imohe, stated that the primary challenge in agricultural financing is lenders' difficulty in managing sector-specific risks. NIRSAL's risk-sharing model aims to instill confidence in financial institutions when lending to agricultural businesses.

Hamidu noted that non-interest financial institutions accounted for over 50% of agricultural financing between January and June 2026, indicating the effectiveness of risk-sharing arrangements. The masterclass also focused on climate-related risks and funding structures for adaptation and mitigation projects, with AFRACA Secretary-General Ngo Bakang Anny Caroll highlighting the importance of financial institutions in agricultural development.