Cardoso Unveils New Vision For Agric Credit As CBN Inaugurates ACGSF Board

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has unveiled an ambitious plan to reposition agricultural financing in the country, describing the inauguration of the newly reconstituted Agricultural Credit Guarantee Scheme Fund (ACGSF) Board as a turning point in Nigeria’s pursuit of food security and inclusive economic growth.

Speaking on Tuesday in Abuja, Cardoso said the inauguration was not a routine ceremony but a “bold statement of intent” to transform the agricultural sector through strategic reforms, innovation, and collaborative leadership.

He described the ACGSF as one of Nigeria’s oldest and most significant development finance programmes, with a legacy stretching back nearly five decades.

“This gathering signals a new dawn for agricultural financing in Nigeria,” the CBN Governor declared. “We are here to reaffirm our commitment to revitalising one of the most critical sectors of our economy. We will no longer accept business-as-usual.”

Cardoso highlighted agriculture’s central role in the national economy, noting that the sector contributes more than one-fifth of Nigeria’s Gross Domestic Product (GDP) and provides livelihoods for nearly two-thirds of the population.

Despite this importance, he lamented that the agricultural sector receives less than five percent of formal credit from the banking system, a structural imbalance he said continues to limit productivity, food supply and value-chain expansion.

He said the renewed focus on agricultural credit aligns with the Federal Government’s “Renewed Hope” agenda, which prioritises food security, poverty reduction, and rural prosperity.

According to him, transforming agriculture is no longer optional but an economic imperative.

“Millions of farmers feeding the nation still face enormous obstacles in accessing affordable credit. Many lack collateral or credit history, and are perceived as high-risk. This is an anomaly we can no longer afford,” he said.

Created in 1977 by Decree No. 20, the ACGSF was designed to encourage banks to lend to farmers by guaranteeing up to 75 percent of the value of agricultural loans.

Cardoso acknowledged the Scheme’s historical contributions, noting that many farmers once considered “unbankable” were able to access financing through it.

However, he insisted that the agricultural landscape of today demands more than traditional loan guarantees. With rapidly evolving value chains, digital technologies, climate challenges, and security concerns impacting agricultural activity, he said the ACGSF must be repositioned to respond to modern realities.

He noted that the 2019 amendment to the ACGSF Act expanded the Scheme’s share capital from N3bn to N50bn and broadened its operational functions. The new Board, he said, must leverage this strengthened capacity.

“The ACGSF must evolve into a dynamic, forward-thinking institution capable of driving large-scale agricultural transformation,” he said.

Cardoso also praised the inclusivity of the newly structured Board, which now includes a representative of Nigerian farmers. Such broad representation, he argued, ensures that the voices of those directly affected by agricultural policies are reflected in decision-making.

Cardoso outlined several strategic priorities that he urged the new Board to pursue decisively.

First, he called for the deepening of financial inclusion, especially for underserved groups such as women and youth who contribute significantly to agricultural value chains but face disproportionate barriers to credit.

He cited studies showing that nearly 60 percent of rural women do not use mobile internet, limiting their access to critical digital services.

To close this gap, Cardoso recommended building partnerships with microfinance banks, cooperative societies, and fintech companies to design tailored products for smallholder farmers.

“Our goal should be that a lack of collateral or remote location is no longer an insurmountable barrier to financing,” he said.

Second, the CBN Governor emphasised the need to strengthen oversight, monitoring, and evaluation to ensure accountability in how guaranteed loans are utilised.

He encouraged the Board to adopt real-time monitoring systems using technology such as digital dashboards and satellite imagery to track crop progress and identify emerging risks such as regional loan defaults.

“Every naira guaranteed must translate into increased productivity, higher incomes and measurable advancement in our food security objectives,” he said.

Continuous evaluation and data-driven adjustments, he noted, will ensure that the Scheme remains effective, transparent and aligned with national priorities.

Cardoso described the inauguration of the Board as a restoration of leadership to an institution central to Nigeria’s food security and economic diversification efforts.

He invoked the saying that “nature abhors a vacuum,” arguing that institutions thrive only under clear direction, strong governance, and purposeful leadership.

With the new Board in place, he said Nigeria is better positioned to build an agricultural economy anchored on innovation, integrity, and financial inclusion.

“We must cultivate a future where every farmer can access the financing they need, every field yields its full potential, and every Nigerian enjoys affordable, plentiful food,” he told the audience.

Cardoso assured the Board of the CBN’s full support and expressed confidence in its capacity to deliver on its mandate.

He congratulated the members and urged them to work with dedication to elevate the ACGSF into a central pillar of Nigeria’s agricultural transformation.