CBN directs ACGSF Board to ensure farmers’ credit is accessible, removing barriers like collateral and remote location for all Nigerian farmers

Central Bank of Nigeria (CBN) has tasked the newly inaugurated Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) to ensure that lack of collateral or remote location no longer limits Nigerian farmers’ access to financing.

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Governor Olayemi Cardoso delivered the charge during the Board’s inauguration ceremony in Abuja, describing the ACGSF as a vital institution that must evolve to meet the needs of modern agriculture.

He noted that while agriculture contributes over one-fifth of Nigeria’s GDP and employs nearly two-thirds of the workforce, it receives less than 5 percent of formal bank credit.

Cardoso emphasised that every hardworking farmer with a viable project should find in the ACGSF a reliable partner.

He urged the Board to strengthen monitoring mechanisms, deploy technology such as digital dashboards and satellite imagery, and ensure loans are used effectively to enhance productivity and farmers’ welfare.

Since its establishment in 1977, the ACGSF has guaranteed up to 75 percent of agricultural loans, enabling banks to lend to farmers previously excluded due to perceived risks.

Cardoso highlighted the Scheme’s 2019 capital expansion from N3 billion to N50 billion as a key step in positioning it for contemporary challenges, including complex value chains, mechanisation, and climate risks.

The CBN Governor further called for strategic inclusivity, urging the Board to focus on financial access for women and youth, particularly rural women who face greater barriers to credit and technology.

He stressed partnerships with microfinance banks, cooperatives, and fintechs to create tailored credit solutions.

“Modern agriculture requires innovation, integrity, and unyielding dedication,” Cardoso said, urging the Board to transform the ACGSF into a cornerstone of Nigeria’s agricultural growth.

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He pledged full support from the Central Bank, affirming confidence in the Board’s ability to drive national economic development through enhanced agricultural financing.