Cardoso inaugurates board for agricultural credit guarantee scheme fund

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), has inaugurated a board for the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja.

Speaking at the inauguration on Tuesday, Cardoso said the inauguration signals “a new dawn” for agricultural financing in the country, describing the ACGSF as one of Nigeria’s oldest development finance programmes and a critical tool for transforming the sector.

He also said the agricultural sector must no longer receive “business-as-usual” financing if Nigeria is to achieve food security and sustainable economic growth.

“Agriculture contributes over one-fifth of our GDP and employs nearly two-thirds of our working population, yet it receives less than five percent of banks’ lending,” Cardoso said.

“This longstanding financing gap has constrained the potential of millions of Nigerian farmers.

“The inauguration of this Board, therefore, comes at an opportune time as we embark on a bold new chapter in agricultural finance. It is a reassertion that we will no longer accept business-as-usual; instead.”

The CBN governor noted that since its creation in 1977, the ACGSF has encouraged banks to lend to farmers by guaranteeing up to 75 percent of agricultural loans.

However, he said the current realities including climate risks, insecurity, extended value chains, and the rise of agritech require the scheme to evolve.

Cardoso said the strengthened ACGSF, whose share capital was expanded from N3 billion to N50 billion under the amended 2019 Act, must move from simply guaranteeing loans to actively driving affordable credit to farmers, cooperatives, and agribusinesses.

‘TARGET WOMEN, YOUTH, UNDERSERVED FARMERS’

The CBN governor urged the new board to prioritise financial inclusion, particularly for smallholder farmers, women, and young people who face the highest barriers to credit.

“Nearly 60 percent of rural women do not use mobile internet, limiting their access to emerging digital services,” he said.

Cardoso further called for partnerships with microfinance banks, cooperatives, and fintechs to design suitable products.

He said innovations such as group lending, agent banking and digital credit systems should be deployed to ensure that lack of collateral or location “is no longer an insurmountable barrier” to obtaining financing.

‘USE DATA, SATELLITE IMAGERY TO TRACK LOANS’

Proposing solutions to delayed loan repayment, the CBN governor called for stronger oversight of guaranteed loans through real-time monitoring tools such as satellite imagery, digital dashboards and data-driven evaluations.

“Every naira guaranteed must deliver real value on the farm and in the marketplace,” Cardoso said.

He added that rigorous monitoring will help track the impact of loans on productivity and farm incomes, while identifying risks such as rising defaults in specific regions.

Cardoso said the government’s “Renewed Hope” agenda places agriculture at the centre of Nigeria’s growth and poverty reduction strategy, noting that smallholder farmers who account for 80 percent of producers, remain the backbone of food production.

He urged the newly inaugurated board to help reposition the ACGSF as the “cornerstone” of the country’s agricultural transformation.

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

“The task ahead may appear daunting, but our determination to succeed is stronger.”

Cardoso pledged the full support of the CBN to ensure the board delivers on its mandate.