The Central Bank of Nigeria (CBN) has announced a sweeping overhaul of agricultural financing, signaling what Governor Yemi Cardoso described as “a new dawn for agricultural lending” and a definitive shift away from ineffective, old intervention models.
Speaking in Abuja during the inauguration of the newly reconstituted Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF), Cardoso emphasized that Nigeria can no longer afford a system where agriculture—responsible for over 20% of GDP and nearly two-thirds of national employment—receives less than 5% of total bank credit.
“This longstanding financing gap is no longer acceptable,” he declared. “The ACGSF must evolve to catalyse affordable credit and unlock the potential of our farmers.”
Created in 1977 to de-risk agricultural lending by guaranteeing up to 75% of loan values, the ACGSF has supported thousands of farmers. Yet, Cardoso noted, the sector’s realities have changed dramatically due to expanded value chains, climate threats and the rise of new technologies. He said the Fund’s enhanced capacity—supported by the 2019 amendment raising its capital base from N3 billion to N50 billion and widening its mandate—provides a strong base for modernization.
A key shift in the revised governance structure is the inclusion of farmer representation, which the governor said would make the scheme more inclusive and responsive.
Cardoso stressed that the goal is not merely to approve guarantees but to dramatically expand affordable lending for agriculture. “Every hardworking farmer with a viable project should find in the scheme a partner that enables growth, not a barrier,” he said.
Highlighting smallholder farmers as the engine of Nigeria’s food system, the governor lamented their persistent struggles with limited collateral, inadequate records and perceptions of high risk. He urged the board to prioritise financial inclusion for women and youth, who face even higher barriers to credit and digital financial services.
He called for partnerships with microfinance banks, cooperatives and fintech innovators to create tailored financial products for underserved farmers. Group lending, mobile money and agent banking, he said, could revolutionise access in remote areas.
Cardoso also pushed for stronger monitoring and evaluation frameworks, backed by technologies such as satellite imagery, digital dashboards and real-time analytics to track loan utilisation and productivity outcomes.
“Every naira guaranteed must deliver real value on the farm and in the marketplace,” he insisted. “Robust oversight will enhance transparency, identify risks early and guide better decision-making.”
He added that data-driven insights will be essential for policy advocacy and refining the scheme to support Nigeria’s broader goals of food security and economic diversification.
The governor concluded that Nigeria’s agricultural sector stands at a pivotal moment, aligned with the Federal Go
