The Nigeria Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL Plc) has secured N5Billion from Providus Bank to enable it increase lending to rural small holder farmers.

NIRSAL is a non-bank financial institution formed in 2023 to raise commercial bank agriculture lending with an aim to reduce agribusiness related credit risks, fix broken value chains and stimulate flow of finance along the value chain.

NIRSAL has developed innovative models that offer sustainable solutions for agricultural financing

  1. Agro Geo-Cooperative Model: The finance industry is reluctant to extend credit to scattered and disaggregated farms of 0.1 to 0.5 ha hence the Geo-Coop formation ensures effective structuring, financing, and monitoring of controlled farming activities for high yield, high revenue and loan repayment.
  2. NIRSAL Index-based Insurance enables farmers to choose agricultural insurance that compensates them. Its Credit Risk Guarantee and interest draw back products provide confidence to financiers and cushion farmers from effects of interest rates.

NIRSAL’s has also signed a new partnership with Globus Bank which will enable them leverage on  NIRSAL’s agribusiness funding model to collaborate in Agribusiness deal origination, development of customized Agribusiness-focused products and the training of the Bank’s staff on tools, techniques, and modalities for increased and improved Agribusiness lending.