The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced a renewed push to overhaul agricultural financing in Nigeria, describing the inauguration of the newly reconstituted Agricultural Credit Guarantee Scheme Fund (ACGSF) Board as a pivotal moment in the nation’s quest for food security and inclusive economic growth.
Speaking in Abuja on Tuesday, Cardoso said the event was more than a formal ceremony, it was a “bold statement of intent” to reposition agriculture through targeted reforms, innovation, and stronger institutional leadership.
He noted that the ACGSF, one of Nigeria’s longest-standing development finance programmes, has supported farmers for nearly 50 years and remains central to national economic sustainability.
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“This gathering signals a new dawn for agricultural financing in Nigeria,” he said. “We are reaffirming our commitment to revitalising a sector that is vital to our economy. Business-as-usual is no longer acceptable.”
Cardoso highlighted agriculture’s significant contributions to Nigeria’s economy, accounting for over 20% of GDP and providing livelihoods for almost two-thirds of the population. Despite this, he lamented that the sector receives less than 5% of total credit from the banking system, a gap he said continues to constrain productivity and limit value-chain development.
He stressed that boosting agricultural credit aligns with the Federal Government’s Renewed Hope agenda, which places food security, poverty reduction, and rural prosperity at its core.
“Millions of farmers still struggle to access affordable financing due to collateral challenges and high-risk perceptions. This is an anomaly we can no longer afford,” he said.
Established in 1977, the ACGSF guarantees up to 75% of agricultural loans issued by banks. Cardoso acknowledged its historic impact, enabling thousands of previously “unbankable” farmers to access credit. However, he said the evolving agricultural landscape, shaped by digital technology, climate risks, and insecurity demands a more agile and modernised Scheme.
He referenced the 2019 amendment to the ACGSF Act, which expanded its share capital from N3 billion to N50 billion, urging the new Board to apply this enhanced capacity toward meaningful transformation.
“The ACGSF must evolve into a forward-thinking institution capable of driving large-scale agricultural transformation,” he said.
Cardoso also praised the Board’s expanded representation, including a seat for Nigerian farmers, describing it as a step toward more inclusive and effective policy implementation.
Outlining his expectations, he urged the Board to prioritise financial inclusion, especially for women and youth who remain underserved within agricultural value chains. He cited research showing that nearly 60% of rural women lack mobile internet access, restricting their ability to benefit from digital financial services.
He recommended deeper partnerships with microfinance banks, cooperatives, and fintech companies to deliver tailored financial products to smallholder farmers.
“Our goal should be to eliminate barriers such as lack of collateral or remote location,” he said.
Cardoso also emphasised strengthening oversight and accountability through digital monitoring tools, including dashboards and satellite imagery to track crop performance, detect risks, and ensure that guaranteed loans translate into real productivity.
“Every naira guaranteed must result in increased yields, higher incomes, and measurable gains in food security,” he said.
Describing the inauguration as a restoration of focused leadership, Cardoso stressed that strong governance and clear direction are essential for institutions like the ACGSF to thrive.
With the new Board in place, he said Nigeria is better positioned to build a modern agricultural economy anchored on innovation, transparency, and inclusion.
“We must envision a future where every farmer can access the finance they need, every farm reaches full potential, and every Nigerian enjoys abundant and affordable food,” he said.
He assured the Board of the CBN’s full support and expressed confidence in its ability to elevate the Scheme into a key driver of Nigeria’s agricultural transformation.
