The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)has disclosed that bank lending to Nigeria’s agricultural sector rose to 5.33 per cent of total credit as of May 2025.
The increase reverses a multi-year decline and signals a cautious return of financial institutions to agribusiness, following a period of stagnation, where agriculture’s share of lending fell from 6.18 per cent in 2022 to 4.82 per cent in 2024, amid slowing sectoral growth and rising risk aversion.
According to NIRSAL’s Managing Director, Sa’ad Hamidu, the bank facilitated over N70 billion in commercial financing for agribusinesses in the third quarter of 2025.
This is its strongest annual performance since inception in 2013.
He further stated that the figure accounts for nearly a quarter of the N270 billion NIRSAL has mobilised for agriculture to date.
Hamidu attributed the renewed interest from banks to NIRSAL’s risk-sharing frameworks and technical support, which aim to reduce default risks and improve the bankability of agribusinesses.
Two newly licensed banks have entered the sector this year, relying on NIRSAL’s tools to structure and manage agricultural loans.
“N70 billion may appear modest compared to the size of Nigeria’s agricultural financing needs, but the significance is profound,” Hamidu.
He said the development was proof that agriculture can be commercially and sustainably financed.
NIRSAL said over 1,100 bank staff have undergone training on agricultural finance this year, with additional sessions for value chain actors focused on feedlot management, commodity exports, and climate finance.
The bank also said it is developing a digital platform, the NIRSAL LandBank portal, intended to connect stakeholders across the agricultural ecosystem and provide data for investment decisions and that it recently signed an agreement with the Rural Electrification Agency (REA) to support off-grid energy access for rural production clusters, a move aimed at improving resilience and productivity.
NIRSAL said it had a target of N150 billion in financing by year-end.
