(Ecofin Agency) - The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), has announced plans to provide about N60 billion ($191.6million) of loans to farmers this year.

The agency will also execute the $300 million African Development Bank, (AfDB)’s Youth Enable Programme, and the $500 million Mechanization Partnership with the Brazilian Government, amongst others.

According to the Managing Director of NIRSAL, Aliyu Abdulhameed, this is aimed at improving farmers’ access to loans and attract youths in the agribusiness sector to reduce the high rate of rural-urban migration.

“NIRSAL’s broad objective is to increase lending to 3.8 million farmers by 2026 through cooperatives and value chains. NIRSAL also plans to reduce the break-even interest rate to agribusiness borrowers from 22 per cent to between 7.5 per cent and 10.5 per cent,” Abdulhameed said.

The MD further noted that NIRSAL is a major part of the government’s several distinct strategies to bring agriculture to its full potential.

Anita Fatunji