Dare Babalola
The Central Bank of Nigeria’s (CBN) Governor, Olayemi Cardoso, has launched a new board for the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja.
Speaking at Tuesday’s inauguration, CBN Governor Cardoso called the launch “a new dawn” for agricultural financing in Nigeria, highlighting the ACGSF as one of the country’s oldest development finance programs and a key driver for sector transformation.
Cardoso emphasised that the agricultural sector needs a shift from “business-as-usual” financing if Nigeria is to achieve food security and sustainable economic growth.
He said, “Agriculture contributes over one-fifth of our GDP and employs nearly two-thirds of our working population, yet it receives less than five percent of banks’ lending.
“This longstanding financing gap has constrained the potential of millions of Nigerian farmers.
“The inauguration of this Board, therefore, comes at an opportune time as we embark on a bold new chapter in agricultural finance. It is a reassertion that we will no longer accept business-as-usual; instead.”
The CBN governor noted that since its inception in 1977, ACGSF has boosted bank lending to farmers by guaranteeing up to 75% of agricultural loans.
However, he pointed out that today’s challenges—climate risks, insecurity, expanding value chains, and the growth of agritech—mean the scheme needs to adapt.
Cardoso said the strengthened ACGSF, whose share capital was expanded from N3 billion to N50 billion under the amended 2019 Act, must move from simply guaranteeing loans to actively driving affordable credit to farmers, cooperatives, and agribusinesses.
The CBN governor urged the new board to prioritise financial inclusion, particularly for smallholder farmers, women, and young people who face the highest barriers to credit.
“Nearly 60 percent of rural women do not use mobile internet, limiting their access to emerging digital services,” he said.
Cardoso called for collaborations with microfinance banks, cooperatives, and fintechs to create tailored products, emphasising innovations like group lending, agent banking, and digital credit systems to make financing more accessible—even for those without collateral or in remote locations. To tackle delayed repayments, he advocated for stricter oversight using real-time tools like satellite imagery, digital dashboards, and data-driven evaluations.
“Every naira guaranteed must deliver real value on the farm and in the marketplace,” Cardoso said.
He added that rigorous monitoring will help track the impact of loans on productivity and farm incomes, while identifying risks such as rising defaults in specific regions.
Cardoso said the government’s “Renewed Hope” agenda places agriculture at the centre of Nigeria’s growth and poverty reduction strategy, noting that smallholder farmers who account for 80 percent of producers, remain the backbone of food production.
He urged the newly inaugurated board to help reposition the ACGSF as the “cornerstone” of the country’s agricultural transformation.
“With today’s inauguration, we have renewed our commitment to a prosperous, food-secure Nigeria,” he said.
“The task ahead may appear daunting, but our determination to succeed is stronger.”
Cardoso pledged the full support of the CBN to ensure the board delivers on its mandate.
