THE Central Bank of Nigeria (CBN) has renewed its commitment to transform agricultural financing and reposition the sector as a cornerstone of Nigeria’s economic revival.
While maintaining the CBN’s stance against intervention financing, CBN governor Yemi Cardoso said the new route signalled “a new dawn for agricultural lending”, and a decisive break from business-as-usual approaches that have left millions of farmers underserved despite their central role in food production and rural livelihoods.
At the inauguration of the newly constituted Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja yesterday, Cardoso said: “Agriculture contributes more than a fifth of our GDP and employs nearly two-thirds of Nigeria’s workforce, yet it receives less than five per cent of total bank lending.
This longstanding financing gap is no longer acceptable. The ACGSF must evolve to catalyse affordable credit and unlock the potential of our farmers.”
Cardoso noted that the ACGSF, established in 1977 to de-risk agricultural lending by guaranteeing up to 75 per cent of the value of loans, had supported countless farmers over the years but must now adapt to a more complex agricultural landscape shaped by extended value chains, climate vulnerabilities, and emerging technologies
He said the Fund’s strengthened capacity, following the 2019 amendment that increased its share capital from ₦3 billion to ₦50 billion and broadened its mandate, provides a foundation for modernisation.
The revised governance structure, which now includes farmer representation, would ensure a more inclusive, responsive Scheme.
The governor added, “The ACGSF must not simply process guarantees; it must drive an expansion of lending to agriculture on affordable terms. Every hardworking farmer with a viable project should find in the Scheme a partner that enables growth, not a barrier.”
Describing smallholder farmers as the backbone of Nigeria’s agricultural system, Cardoso said they continue to face high barriers to accessing credit due to lack of collateral, limited records, and perceptions of high risk.
The CBN chief said expanding financial inclusion must be a priority for the new Board, particularly for women and youth, who remain disproportionately excluded from agricultural credit and digital financial services.
“The Scheme should collaborate with microfinance institutions, cooperatives and fintech firms to design products that reach underserved farmers,” he said, adding that group lending, mobile money channels and agent banking could transform access for farmers in remote areas.
Cardoso also urged the Board to strengthen monitoring and evaluation, saying modern tools such as satellite imagery, digital dashboards and real-time analytics should be used to track loan utilisation and productivity outcomes.
His words: “Every naira guaranteed must deliver real value on the farm and in the marketplace. Robust oversight will ensure transparency, identify emerging risks and support better decision-making.”
He emphasised that evidence from monitoring would be crucial for policy advocacy and for fine-tuning the Scheme to achieve national goals of food security and economic diversification.
The CBN governor said the agricultural sector is at an unprecedented moment of opportunity under the Federal Government’s Renewed Hope Agenda, which aims to build a resilient, modern, and inclusive agricultural economy.
While acknowledging the complexity of Nigeria’s agricultural value chains, Cardoso stressed that the nation’s determination to succeed was stronger than the challenges ahead.
Addison noted that with the inauguration, the CBN is filling a leadership void and renewed our commitment to a prosperous, food-secure Nigeria, saying the ACGSF must rise to new heights as the cornerstone of our agricultural transformation.
He pledged full support from the CBN to the Board and expressed confidence in their capacity to deliver on their mandate.