The Central Bank of Nigeria (CBN) has directed the newly inaugurated Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) to ensure that farmers—regardless of collateral constraints or remote location—can access the credit they need to boost production.

CBN Governor Olayemi Cardoso issued the directive in Abuja during the inauguration of the Board, stressing that the Scheme must modernise to meet the financing needs of today’s agriculture.

He noted that the ACGSF, now 48 years old, remains one of Nigeria’s most enduring development finance programmes and a critical part of the Bank’s statutory mandate. According to him, the renewed focus is not a return to interventionist policies but a continuation of the CBN’s responsibility to support agricultural productivity.

Cardoso said the priority going forward is to improve inclusivity in agricultural financing.
“Our goal should be that a lack of collateral or remote location is no longer an insurmountable barrier to financing,” he stated.

Despite agriculture’s significant contribution to national GDP and employment, the sector receives less than 5 percent of total bank credit. Cardoso described this as a paradox that the Scheme must urgently correct.

He urged the Board to reposition the ACGSF as a dependable partner to every viable farmer, ensuring that hardworking agricultural entrepreneurs receive the financial backing required to expand their operations.

To strengthen impact, he called for improved monitoring and verification systems. He emphasised that loans must no longer be disbursed without measurable outcomes.
“It is essential to track the impact of guaranteed loans on productivity and farmers’ welfare,” he said, advocating the use of technology—such as satellite imagery and digital dashboards—to enhance transparency.

Cardoso further noted that robust evaluation would help identify potential risks, improve policy decisions, and support the Scheme’s long-term sustainability.

Reviewing the Scheme’s history, the CBN Governor highlighted that the ACGSF, established in 1977, has played a crucial role in de-risking agricultural lending by guaranteeing up to 75 percent of banks’ loans to farmers. The 2019 amendment that expanded the Fund’s capital base from ₦3 billion to ₦50 billion, he said, has made it more capable of supporting today’s agricultural challenges.

However, he stressed that modern agriculture—with its complex value chains, advanced technologies, climate risks and emerging agritech players—requires a more dynamic and forward-thinking Scheme.

Cardoso commended the Board’s expanded structure, which now includes a representative of Nigerian farmers, calling it a strategic move that fosters collaboration between policymakers, lenders and the farming community.

He said the agricultural sector is now at a moment of “unprecedented opportunity,” aligned with the Federal Government’s Renewed Hope Agenda to build a technologically driven, resilient and inclusive agriculture economy.

Cardoso also emphasised the urgent need to bring women and youth into the agricultural financing ecosystem. He called for credit products tailored to their needs, using models such as group lending, cooperatives, and agent banking.

He urged the Board to be innovative and unwavering in its mission, noting that transforming Nigeria’s agricultural value chain requires commitment and bold action.

“With today’s inauguration, we have filled a void and renewed our commitment to a prosperous, food-secure Nigeria,” he said.

The CBN Governor reaffirmed the apex bank’s full support for the Board as it begins its work.
“I am confident that with your expertise and commitment, the ACGSF will rise to new heights as the cornerstone of Nigeria’s agricultural transformation,” he added.