The Central Bank of Nigeria (CBN) has inaugurated a revamped board for the Agricultural Credit Guarantee Scheme Fund (ACGSF), marking what Governor Olayemi Cardoso described as a “new era for agricultural financing.

”Speaking at the Abuja ceremony on Tuesday, Cardoso highlighted the persistent gap in bank lending to farmers, which remains below 5% despite agriculture employing nearly two-thirds of Nigerians and contributing more than one-fifth of GDP.

The governor emphasised that the new board reflects a renewed commitment to reform and modernise agricultural credit. 

“The ACGSF must evolve to meet contemporary challenges, from climate risk to fragmented value chains and the rise of agritech,” Cardoso said. 

He noted that the scheme’s core mission of de-risking agricultural loans remains critical but must be supported by modern tools and strong governance.

Under the revamped board, financial inclusion has become a top priority, particularly for women and young farmers. 

Cardoso called for collaboration with microfinance banks, cooperatives, and fintech firms to ensure that the lack of collateral or remote location no longer blocks access to credit. 

Studies cited by the CBN indicate that nearly 60% of rural women still lack access to mobile internet, which limits their use of digital financial services.

The governor urged the board to use satellite imagery and digital dashboards to track loan disbursement, crop progress, and repayments in real time. 

Enhanced transparency and data-driven monitoring are expected to improve loan performance, ensuring that every naira guaranteed delivers measurable value on the farm and in the marketplace.

Strengthening the ACGSF is central to the government’s Renewed Hope Agenda, which aims to build a resilient, technologically advanced agricultural economy. 

Cardoso stressed that smallholders, who produce around 90% of Nigeria’s food, must be prioritised to reduce rural poverty and secure the nation’s food supply.

With these reforms, Nigeria’s agricultural finance landscape is set for a significant overhaul, creating opportunities for mechanisation, improved irrigation, post-harvest storage, and value-chain development. 

“With today’s inauguration, we have filled a void and renewed our commitment to a prosperous, food-secure Nigeria,” the governor concluded.

Source: BusinessDay
Image Credit: National Accord