NIRSAL Guarantees N61.16bn Loans To Agriculture


Managing Director, Nigeria
Incentive Based Risk Sharing
System for Agricultural Lending
(NIRSAL), Mr. Aliyu Hameed has
said that the firm has guaranteed
loans totaling N61.16billion to agriculture and disbursed
N753.35million as rebate to
borrowers who paid back loans
on time between 2013 and
This was the period when the agency was still a project
implementation office under
incubation within the
Development Finance
Department of the Central Bank
of Nigeria (CBN). He added that NIRSAL had also
guaranteed up to 207
agricultural value chain projects
valued at N39.49billion under
the Growth Enhancement
Scheme (GES) programme of the Federal Ministry of Agriculture &
Rural Development (FMARD) and
paid $2.2million
(N439.09million) as interest
draw back to beneficiaries on 91
agriculture related projects. Hameed said NIRSAL had
between 2013 and mid-2016
trained 157,000 farmers/
primary producers in 6 value
chains including rice, cocoa,
cotton, tomatoes, sesame, and soybeans.
Speaking during a presentation
at the Design Workshop on
Establishing an African
Agriculture Risk Sharing and
Financing Mechanism which was organised by the African
Development Bank (AfDB) in
Nairobi, Kenya, the NIRSAL boss
argued that the growth of
agriculture in Nigeria will lead
not only to prosperity but also improve income equality in the
He, maintained that the positive
impact of agriculture on income
inequality was one of the several
reasons for the focus of the Buhari administration on the
sector which is believed to have
the potential to boost the
economy and improve the lives
of Nigerians.
Hammed further described the progress made so far by NIRSAL
as a product of the farsighted
pro-people vision of the Buhari
administration and the
continued commitment of the
CBN under Mr. Godwin Emefiele to achieving the vision.
His comments also came as the
AfDB identified the NIRSAL
financial model as of the current
successes of African agriculture
during its post event assessment of the workshop.
Describing NIRSAL as a “Game
Changer” in Nigeria’s agricultural
space, the MD added that it
planned to further facilitate
lending to 3.8 million agricultural producers out of the estimated
14 million agricultural producers
in the country within the next 10
years by providing guarantees
through intermediaries including
Microfinance institutions and cooperatives.
In a statement by NIRSAL’s
Coordinator Research & Strategy,
Bello Abdullahi Abba! Hameed
said part of the key objective of
NIRSAL was to increase total value of agricultural lending-
from the current 1.4 percent to
10 percent of total bank lending
by 2026 and generating by $3
billion of additional agricultural
lending in order to boost food production levels, stimulate
inclusive growth, create jobs and
increase the standard of living of
farmers who constitute the
greater majority of our
population. Essentially, NIRSAL was set up in
2013 as an initiative of the CBN,
the Bankers’ Committee and the
FMARD as a primary platform for
managing agribusiness risk so
banks can lend with confidence to the sector which had largely
been neglected.
NIRSAL use credit guarantees to
address the risk of default and
provide technical assistance and
incentives to both financial institutions and borrowers to
bridge understanding and
increase capacity to payback.