Follow Us on Google
From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN), on Tuesday, inaugurated the newly constituted Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF), to improve lending to the agricultural sector.
Speaking at the ceremony in Abuja, CBN Governor, Olayemi Cardoso, said the move marks a new dawn for agricultural financing in the country, adding that the revitalised Scheme will play a central role in expanding affordable credit to farmers, boosting food security and supporting broader economic growth.
He noted that despite agriculture contributing more than one-fifth of Nigeria’s GDP and employing nearly two-thirds of the population, the sector still receives less than five per cent of total bank credit.
The CBN boss described the gap as unacceptable, stressing that the country can no longer continue with the “business-as-usual” approach that has stifled the sector’s potential for decades.
The inauguration of the new Board, he said, reaffirms the commitment to reposition agriculture as a core priority within the financial system and national policy.
Cardoso said the ACGSF must help break these barriers by ensuring affordable financing flows to farmers and agri-business owners for essential investments such as inputs, irrigation, mechanisation, storage and processing, investments that directly raise productivity and reduce post-harvest losses.He urged the Board to deepen financial inclusion by targeting underserved groups, especially women and youth.
According to him, “Our Agricultural Transformation Agenda Nigeria’s agricultural sector stands at the crossroads of unprecedented opportunity. The vision of the Federal Government’s “Renewed Hope” agenda is clear to build a resilient, technologically advanced, and inclusive agricultural economy that ensures food security, reduces poverty, and creates wealth for millions of Nigerians. Realizing this vision requires us to decisively overcome the financing constraints that have long stifled agriculture’s growth.
Smallholder farmers – who make up 80% of Nigeria’s farmers and account for about 90% of our agricultural production continue to face high barriers in accessing affordable credit. Many lack collateral or credit history and are perceived as high-risk by conventional lenders. This is a structural anomaly We can no longer afford, given that these same smallholders feed our nation and drive our rural economy.
Other News
“The ACGSF must therefore assume a transformative role in closing the agricultural credit gap. It should not simply guarantee loans as a formality, but actively catalyze an expansion of lending to agriculture on affordable terms. We envision an agricultural financing ecosystem where farmers and agri-entrepreneurs can obtain credit to invest in modern inputs, irrigation, mechanization, storage, processing, and other value-adding activities.
“This will enable them to raise productivity, reduce post-harvest losses, and earn better incomes outcomes aligned with our national priorities for food security and economic diversification. In essence, the ACGSF should become the cornerstone of Nigeria’s agricultural transformation, working in concert with other government initiatives to channel resources to the grassroots of our economy,
“Expand the Scheme’s reach to underserved segments of our farming population, especially women and youth. We know that rural women, for example, are key actors in agriculture, yet they often have even less access to credit and technology than their a male counterparts – studies indicate nearly 60% of rural women do not use mobile internet, limiting their access to emerging digital services.
“The ACGSF should proactively target such groups by collaborating with microfinance banks, cooperatives, and fintech companies to design appropriate credit products and delivery channels. By leveraging innovative mechanisms (Buch as group lending models, mobile smallholders into the formal credit money, and agent banking). The Scheme can bring more net, Our goal should be that a lack of collateral or remote location is no longer an insurmountable barrier to financing. Every hardworking farmer with a viable project should find in the ACGSF an enabling partner that helps them access the they need to grow their enterprise. a robust
“Strengthen Oversight, Monitoring and Evaluation: It is essential to institute a framework for tracking the impact of guaranteed loans on agricultural productivity and farmers’ welfare. This Board should champion the use of data and technology for real-time monitoring of projects supported under the Scheme.
Leveraging modern tools from satellite imagery to track crop progress, to digital dashboards that monitor loan disbursements and repayments-v we can greatly enhance transparency and accountability. Regular oversight will ensure that loans guaranteed by the Fund are being used for their intended purposes and are yielding positive results. It will also help identify bottlenecks or emerging risks (such as high default in a particular region or sub-sector) so that we can respond proactively, whether through capacity- building for borrowers or adjustments in our approach.
“Moreover, rigorous monitoring and evaluation will provide evidence of how the Scheme is contributing to increased output, higher farm incomes, and improved food security. Such evidence is vital for policy advocacy and for continuously fine-tuning the Scheme’s operations. In summary, this Board must embed a culture of accountability and learning within the ACGSF – ensuring that every naira guaranteed delivers real value on the farm and in the marketplace.
“Let us cultivate a future where every farmer can easily access the financing they need, every field yields its full potential, and every Nigerian can enjoy affordable, plentiful food on their table.”
