The Central Bank of Nigeria (CBN) has inaugurated a new board for the Agricultural Credit Guarantee Scheme Fund (ACGSF) to expand farmers’ access to affordable credit.
CBN Governor Olayemi Cardoso said the move aims to tackle chronic underfunding in agriculture, a sector that contributes over 20% of Nigeria’s GDP and employs nearly two-thirds of the population, yet receives less than 5% of total bank lending.
“The new Board will transform the ACGSF from a passive credit guarantor into a proactive driver of lending across the value chain,” Cardoso said. “Every hardworking farmer with a viable project should find in the ACGSF an enabling partner.”
The scheme, boosted by a 2019 amendment that raised its capital from N3 billion to N50 billion, now has a broader operational mandate.
For the first time, a representative of Nigerian farmers will sit on the board to ensure policies reflect the realities of smallholders, who produce roughly 90% of the country’s food.
- Youth Key to Reviving Nigeria’s Agriculture, Achieving Food Security – KyariFederal Ministry of Agriculture and Food Security has identified youth participation as a critical driver in revitalising Nigeria’s
- FG Targets Private Investment to Unlock Nigeria’s Agricultural PotentialThe Federal Government has intensified calls for increased private sector and international investment to transform Nigeria’s agricultural sector,
- FG Pushes Stronger PPP Model to Reform Correctional CentresThe Federal Government has called for stronger Public-Private Partnerships (PPP) to drive sustainable reforms across the across correctional
Cardoso highlighted that women and young farmers remain largely excluded from finance, with nearly 60% of rural women lacking mobile internet access. He urged the board to partner with microfinance institutions, cooperatives, and fintech companies to design tailored credit products for underserved groups.
A new monitoring system using satellite imagery, digital dashboards, and data-driven risk analysis will track crop performance, loan disbursements, and repayment. Cardoso said the tools will improve transparency and ensure funds directly benefit farms and markets.
He reaffirmed the CBN’s commitment to making ACGSF a cornerstone of Nigeria’s agricultural transformation and food security agenda. “With today’s inauguration, we renew our commitment to a prosperous, food-secure Nigeria,” he said, urging the board to deliver measurable results.
About The Author
