The Central Bank of Nigeria has introduced a renewed agricultural financing framework aimed at closing long-standing credit gaps in the sector and positioning agriculture as a key driver of national economic revival.
The announcement came as the apex bank inaugurated a reconstituted board for the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja.
CBN Governor Yemi Cardoso said the initiative marks a clear shift from previous intervention-led models, describing it as a “new dawn for agricultural lending.”
He noted that despite agriculture contributing more than 20 percent of Nigeria’s GDP and employing nearly two-thirds of the labour force, it receives less than five percent of total commercial bank lending – a trend he said can no longer continue.
The News Chronicle understands that Cardoso emphasised the need for the ACGSF to respond more effectively to the evolving realities of modern agriculture, including longer value chains, climate-related risks and the rapid spread of digital technologies across rural communities.
He recalled that the Fund, created in 1977 to guarantee up to 75 percent of agricultural loans, has supported many farmers over the years but now requires stronger tools and a more responsive governance model.
He said the foundation for the current modernization was the 2019 amendment that increased the Fund’s capital base from N3 billion to N50 billion and enlarged its mission. Including farmer representatives on the board, he continued, would help the plan to be more inclusive and better suited to meet local needs.
Cardoso went on to emphasize that collateral limitations and perceptions of risk kept smallholder farmers—the pillar of food production—the most underprivileged in obtaining credit.
He advised the board to give financial inclusion for women and young people first priority and to collaborate with microfinance organizations, cooperatives, and fintech companies to create goods suited to neglected rural areas.
Reach could be greatly increased through channels including mobile money, agent banking, and group lending, he said.
To guarantee that loans guaranteed by the plan generate tangible effects on the field and in the market, the CBN governor also demanded more sophisticated monitoring systems driven by digital instruments, including real-time dashboards and satellite imagery.
He observed that good governance will boost transparency, steer superior decision-making, and help with more general national objectives on food security and economic diversity.
Under the Federal Government’s Renewed Hope Agenda, Cardoso determined the agricultural sector is set for substantial expansion and said this offers an unmatched chance to create a resilient and inclusive agriculture economy.
