Nigeria Incentive-Based Risk Sharing System for Agricultural Lending

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) is an initiative of the Central Bank of Nigeria (CBN), the Bankers Committee (BC) and the Federal Ministry of Agriculture & Rural Development (FMA &RD).

It provides guarantee in form of Credit Risk Guarantee (CRG) as a comfort for the Banks to lend and also incentivize the farmers through provision of Interest Drawback Program (IDP) to be paid quarterly based on the agricultural project. The Guarantee ranges from about 30-75% depending on the Agricultural value chain involved. IDP also ranges from 20-40% depending on the category.


All actors in the agricultural value chain can benefit under NIRSAL. It's a financing initiative that will provide farmers with affordable financial products and reduce the risk of granting bank loans to farmers.

General Requirements

1. You will have to open an account with the Bank
2. The Agricultural value chain where you operate must be clearly identified
3. Availability of off takers must be identified and contract agreements must be sought
4. Payment of annual 3% CRG for guaranteed portion based on the classification of the client project
5. Eligibility for IDP on the commercial interest charged is at the NIRSAL's discretion and to be paid quarterly
6. Equity contribution between 0 - 20%
7. Interest rate is at commercial rate
8. The borrower must have an Insurance Policy from Nigeria Agricultural Insurance Corporation (NAIC)
9. Collateral Required
10. Maximum Credit: Subject to the request
11. Maximum Tenor: Not fixed, based on the request
12. Pricing: Commercial rate