By Seun Ibiyemi
The Central Bank of Nigeria (CBN) on Tuesday has inaugurated a revamped board for the Agricultural Credit Guarantee Scheme Fund (ACGSF).
The ceremony took place in Abuja, with officials, board members, and industry stakeholders in attendance.
Speaking at the event, Cardoso highlighted the persistent financing gap in Nigeria’s agricultural sector, noting that less than 5 per cent of bank lending currently reaches farmers, despite agriculture contributing more than one-fifth of GDP and employing nearly two-thirds of the nation’s workforce.
“This inauguration is a defining moment for the ACGSF and for our broader efforts to harness agriculture as a driver of growth, employment, and food security,” Cardoso said. “We can no longer accept the business-as-usual approach to agricultural lending.”
Established in 1977, the ACGSF guarantees up to 75 per cent of agricultural loans issued by banks, enabling lenders to support farmers who might otherwise be deemed too risky.
Cardoso emphasized that the scheme must now evolve to meet contemporary challenges, including climate risks, fragmented value chains, and the rise of agri-tech.
The governor outlined priorities for the new board, including deepening financial inclusion for underserved groups such as women and youth farmers, collaborating with microfinance banks, cooperatives, and fintech firms to create tailored financing products, and leveraging technology like satellite imagery and digital dashboards for real-time monitoring of loan performance.
“Every naira guaranteed must deliver real value on the farm and in the marketplace,” Cardoso stressed, underscoring the importance of transparency, accountability, and data-driven oversight.
He also highlighted the strategic expansion of the ACGSF’s share capital from ₦3 billion to ₦50 billion under the 2019 amendment, as well as the inclusion of farmers’ representatives on the board to strengthen collaboration between policymakers, financiers, and the farming community.
The reforms are part of the government’s Renewed Hope agenda aimed at building a resilient, technologically advanced agricultural economy.
Cardoso urged the board to prioritise smallholders, who produce around 90 per cent of Nigeria’s food, and to focus on investments in irrigation, mechanisation, post-harvest storage, and other productivity-boosting inputs.
“With today’s inauguration, we have filled a void and renewed our commitment to a prosperous, food-secure Nigeria,” Cardoso concluded, pledging the central bank’s full support to ensure the board drives meaningful progress in agricultural development and national economic growth.