CBN directs agric fund board to expand credit access for farmers

The Central Bank of Nigeria (CBN) has tasked the newly inaugurated Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) with ensuring that lack of collateral or remote locations no longer hinder farmers from accessing credit.

CBN Governor Olayemi Cardoso described the 48-year-old Scheme as a vital tool for financing agriculture and emphasized its role in supporting Nigeria’s economic backbone.

“Agriculture contributes over 20% of GDP and employs nearly two-thirds of the workforce, yet receives less than 5% of bank lending,” he said.

Cardoso urged the Board to strengthen monitoring mechanisms, leverage technology such as satellite imagery and digital dashboards, and ensure loans are used effectively to boost productivity, farm incomes, and food security.

He highlighted the need to prioritize inclusion for women and youth and encouraged partnerships with microfinance banks, cooperatives, and fintechs.

Since its establishment in 1977, the ACGSF has de-risked agricultural lending by guaranteeing up to 75% of loans.

Cardoso called for modernization of the Scheme to address today’s complex agricultural landscape, including value chains, climate and security risks, and emerging agritech players.

“The ACGSF must become a dynamic, forward-thinking scheme that catalyzes investments in modern inputs, irrigation, mechanization, storage, and processing,” he said, pledging the CBN’s full support for the Board’s mandate.