The Central Bank of Nigeria (CBN) has inaugurated a new board for the Agricultural Credit Guarantee Scheme Fund (ACGSF), signalling a new era in agricultural finance. 

Governor Olayemi Cardoso emphasised that despite agriculture contributing over 20% of GDP and employing nearly two-thirds of Nigerians, banks continue to lend less than 5% of their credit to the sector. 

The reforms will make financing more inclusive, particularly for youth, women, and smallholder farmers, while embedding technology and accountability across Nigeria’s agricultural value chains.

Governor Cardoso described the inauguration as “a defining moment” for Nigeria’s agricultural sector. 

He highlighted that the longstanding financing gap has constrained millions of smallholders who feed the nation and drive the rural economy. 

With the newly appointed board, the CBN aims to reposition the ACGSF as a dynamic instrument for channelling capital to farmers and agribusinesses.

Established in 1977, the ACGSF guarantees up to 75% of loans issued to farmers by commercial banks. 

A 2019 amendment expanded the fund’s capital from ₦3 billion to ₦50 billion and introduced a more inclusive board, including farmer representatives. 

“Inclusivity is strategic; it enshrines partnership between policymakers, financiers and the farming community,” Cardoso said.

The board will prioritise underserved segments, particularly women and young farmers, by collaborating with microfinance banks, cooperatives, and fintech firms to design products that suit rural realities. 

Research indicates that nearly 60% of rural women lack access to mobile internet, which limits their use of digital financial services. 

The new structure aims to ensure that a lack of collateral or remote location is no longer an insurmountable barrier to financing.

Cardoso stressed the importance of real-time monitoring, advocating for satellite imagery and digital dashboards to track crop progress, loan disbursements, and repayments. 

Enhanced transparency, he said, will improve loan performance, identify risks, and ensure every naira guaranteed delivers value on the farm and in the marketplace.

The reforms support the government’s Renewed Hope agenda to build a resilient, technologically advanced agricultural economy. 

Smallholders, who produce around 90% of Nigeria’s food, will be prioritised to reduce rural poverty and strengthen national food security. 

Investments in irrigation, mechanisation, post-harvest storage, and other productivity-enhancing tools are expected to increase yields and incomes for millions of farmers.

“While Nigeria’s agricultural value chains are complex, the opportunities for transformation are vast,” Cardoso said. 

Source: Business Day