The Central Bank of Nigeria (CBN) has set a new strategic direction to improve credit access for smallholder farmers, aiming to boost national food‑security efforts. The initiative was unveiled at the launch of the revamped Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja. CBN Governor Olayemi Cardoso said the move marks a significant shift in agricultural financing and reflects the Federal Government’s commitment to reposition agriculture as a driver of inclusive growth and economic diversification.
Established in 1977, the ACGSF has long been a key development‑finance tool. Yet, despite agriculture employing nearly two‑thirds of Nigeria’s labor force and contributing over 20 % of GDP, it receives less than 5 % of total bank credit. This disparity has constrained the potential of millions of farmers for decades. Cardoso noted that the agricultural landscape has evolved, with integrated value chains, technology, climate risks, and a growing agritech ecosystem, requiring the Scheme to become a dynamic, data‑driven institution.
The 2019 amendment increased the Scheme’s share capital from N3 billion to N50 billion and expanded its operational scope. The new Board now includes farmers’ representatives, ensuring policies are grounded in real‑sector needs. The primary goal of the revamp is to unlock affordable credit for smallholders, who produce 90 % of the nation’s agricultural output but face barriers such as limited collateral, poor credit histories, and weak access to financial services.
Cardoso urged the Board to design products tailored to women, youth, and other underserved groups, leveraging fintechs, micro‑finance banks, and cooperatives to deliver innovative lending models. He also emphasized deploying technology—such as satellite imagery and digital dashboards—to monitor loan utilization and ensure measurable impact.
With this new direction, the CBN aims to address the long‑standing challenges faced by smallholder farmers, ultimately enhancing food security and supporting economic growth. Successful implementation of the initiative is expected to generate a significant positive impact on Nigeria’s agricultural sector and the broader economy.
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