In a significant move aimed at revitalizing Nigeria’s agricultural sector, the Central Bank of Nigeria (CBN) has inaugurated a reconstituted Board for the Agricultural Credit Guarantee Scheme Fund (ACGSF), with Governor Olayemi Cardoso outlining a comprehensive strategy to bridge the nation’s chronic agricultural financing gap.
The inauguration ceremony, held in Abuja, was described by Governor Cardoso as a pivotal moment for one of the country’s oldest development finance initiatives. He framed the event as “a defining moment, a bold statement of intent that signals a new dawn for agricultural financing in Nigeria,” underscoring the administration’s commitment to transforming the sector.
Governor Cardoso highlighted a stark paradox at the heart of Nigeria’s economy: while agriculture contributes over 20% to the nation’s Gross Domestic Product (GDP) and employs nearly two-thirds of the workforce, it receives less than 5% of total bank lending. This severe financing deficit, he argued, has stifled the potential of millions of farmers and agribusinesses, constraining productivity, innovation, and growth.
“The country can no longer accept ‘business as usual’ in agricultural lending,” Cardoso asserted, emphasizing that the 47-year-old ACGSF must be radically modernized to address contemporary challenges. These include navigating complex agricultural value chains, mitigating climate risks, and integrating agritech and modern production systems into the financing framework.
The CBN Governor pointed to the scheme’s enhanced legal and financial foundation following its 2019 amendment, which increased its share capital from N3 billion to N50 billion and broadened its operational scope. This expanded capacity is now to be guided by a newly constituted seven-member board, whose composition marks a departure from the past.
Significantly, the board now includes a direct representative of Nigerian farmers, a move designed to ensure that the fund’s policies and operations are informed by the lived experiences and needs of the primary beneficiaries. This structure is intended to foster stronger collaboration between policymakers, financial institutions, and rural producers.
Governor Cardoso charged the new board with several critical mandates, with special focus placed on reaching women and young farmers, who face persistent barriers to credit. Citing research indicating that nearly 60% of rural women lack access to mobile internet, Cardoso urged the board to partner with microfinance institutions, cooperatives, and financial technology (fintech) companies to design accessible financial products and delivery channels for these underserved groups.
Furthermore, Cardoso stressed that the board is expected to deploy advanced monitoring tools, including data platforms, digital dashboards, and satellite imagery. These technologies will enable real-time tracking of loan utilization, crop performance, and repayment trends, thereby enhancing transparency, identifying bottlenecks early, and ensuring that guaranteed loans yield tangible, measurable outcomes.
Analysts have described the initiative as instrumental in achieving affordable food prices, sustaining rural livelihoods, and fortifying Nigeria’s broader economic development agenda. The reconstituted ACGSF board represents a critical step in aligning financial mechanisms with the urgent need to unlock the vast, yet undercapitalized, potential of Nigerian agriculture.
