The Central Bank of Nigeria has introduced a major overhaul of the Agricultural Credit Guarantee Scheme Fund, setting a new strategic direction to widen credit access for smallholder farmers and strengthen national food security. Speaking in Abuja at the inauguration of the reconstituted ACGSF Board, CBN Governor, Olayemi Cardoso, described the initiative as “a new dawn” for agricultural financing and said it aligns with the Federal Government’s plan to position agriculture as a key driver of inclusive growth, rural development and economic diversification.
Cardoso explained that the ACGSF, which was established in 1977, remains one of Nigeria’s most impactful development finance tools. However, he noted that despite agriculture employing nearly two-thirds of the country’s labour force and contributing over 20 per cent to GDP, the sector still receives less than five per cent of total bank credit. He said this long-standing gap has limited the growth and potential of millions of farmers across the country.
He pointed out that the agricultural sector has changed significantly, moving from subsistence activity to one shaped by integrated value chains, technology, climate risks and an expanding agritech ecosystem. According to him, the Scheme must now evolve into a dynamic and data-driven system that can support the realities of modern agriculture.
Cardoso highlighted the 2019 amendment that increased the Scheme’s share capital from N3 billion to N50 billion and widened its operational scope. He added that one major improvement is the inclusion of farmers’ representatives on the newly constituted Board, which he described as an “inclusive and strategic” step to ensure policies reflect real sector needs.
He stressed that the core aim of the revamp is to unlock affordable credit for smallholders who contribute 90 per cent of Nigeria’s agricultural output but face difficulties due to low collateral, weak credit history and limited access to formal financial services.
Cardoso urged the Board, chaired by Olusegun Oshin, to develop products that serve women, youth and other underserved groups, while working with fintechs, microfinance banks and cooperatives to introduce innovative lending models. He also encouraged the adoption of technology such as satellite imagery and digital dashboards to monitor loan usage and measure impact.
Oshin welcomed the reforms and called for further expansion of the Fund to support the level of investment needed for significant transformation in the sector.
