The Central Bank of Nigeria has unveiled plans to dramatically scale up lending to the agricultural sector, signaling what its leadership describes as a new era in Nigeria’s quest for food security and economic resilience.
CBN Governor Olayemi Cardoso announced the inauguration of the newly reconstituted Board of the Agricultural Credit Guarantee Scheme Fund, a key vehicle for supporting farmers with access to finance.
Cardoso noted that agriculture contributes more than one-fifth of Nigeria’s Gross Domestic Product and employs a majority of the population, yet it receives less than five percent of total bank credit. He described the CBN’s renewed push as a “bold statement of intent” that aims to reposition agriculture at the heart of national development priorities.
According to him, the insufficient flow of credit to farmers has long constrained productivity, limited technological adoption, and held back expansion across the food value chain.
At the center of the intervention is the Agricultural Credit Guarantee Scheme Fund, a long-standing mechanism through which the CBN supports banks in lending to farmers, including those considered high-risk or “unbankable.”
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The scheme guarantees up to 75 percent of agricultural loans, allowing participating financial institutions to lend more confidently while reducing their exposure to default risk.
Cardoso emphasized that the new board will strengthen collaboration among policymakers, lenders, and farming communities to refine the scheme’s operations and ensure funds reach the intended beneficiaries.
The CBN’s move is aligned with the Federal Government’s broader “Renewed Hope” agenda, which seeks to build a technologically enabled, inclusive agricultural economy capable of reducing poverty and ensuring stable food supplies.
Lawmakers had earlier called on the CBN to raise agricultural lending to seven per cent of total bank credit within five years, with half of that amount directed toward smallholder farmers who produce a significant portion of the nation’s food.
With this renewed focus, stakeholders say the initiative has the potential to boost productivity, expand access to finance, and elevate millions of farmers out of poverty.
