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By Daniel Adaji
CBN Governor Olayemi Cardoso on Tuesday inaugurated the new Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF).
Cardoso, speaking at the ceremony in Abuja, described the inauguration as a defining step that signals a “new dawn” for agricultural financing in the country.
He noted that agriculture remains the backbone of the economy, contributing over one-fifth of GDP and employing nearly two-thirds of the workforce, yet receives less than 5 percent of formal banking credit.
“The longstanding financing gap has constrained millions of Nigerian farmers’ potential. We will no longer accept business-as-usual but embrace a future where agriculture receives its rightful place in our financial system and national priorities,” he stated.
Established by Decree No. 20 of 1977, the ACGSF guarantees up to 75 percent of agricultural loans and aims to encourage banks to lend to a sector historically seen as risky. Cardoso pointed to recent statutory amendments that expanded the scheme’s share capital from N3 billion to N50 billion and broadened its operational scope, urging the new Board to evolve the fund to meet modern agricultural needs such as value-chain growth, technology adoption, and climate risk management.
He also emphasised the scheme’s more inclusive governance model, now featuring representatives of farmers and other stakeholders, designed to deepen collaboration between policymakers, financiers, and the farming community.
Linking the reforms to the Federal Government’s Renewed Hope agenda, the Governor stressed the need to close credit barriers for Nigeria’s 80 percent smallholder farmers who produce 90 percent of agricultural output but still face challenges such as lack of collateral and credit history.
Cardoso set out strategic priorities for the new Board, including expanding credit access to underserved groups such as rural women and youth through partnerships with microfinance institutions, cooperatives, and fintech innovators.
He also highlighted the importance of stronger oversight and loan tracking using satellite imagery and digital dashboards to ensure funds are properly utilized and yield measurable improvements in productivity and income.
“The ACGSF should become the cornerstone of Nigeria’s agricultural transformation, enabling farmers to invest in inputs, mechanization, storage, and processing to boost productivity, reduce losses, and increase incomes,” he said.
He congratulated the Board members and assured them of the CBN’s full support, stressing their shared commitment to advancing food security, reducing poverty, and driving economic diversification.
“Together, let us cultivate a future where every farmer accesses the financing needed to realize the full potential of their fields, ensuring affordable and plentiful food on every Nigerian table,” Cardoso added.
The newly inaugurated Board includes government officials and representatives from the farming community, policy circles, and financial institutions. Its establishment marks a fresh, strategic push to strengthen the Agricultural Credit Guarantee Scheme Fund as a key instrument for sustainable agricultural growth and national development.