The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has inaugurated a board for the Agricultural Credit Guarantee Scheme Fund in Abuja.

Speaking at the event, Cardoso described the move as a “new dawn” for agricultural financing, highlighting the ACGSF as one of Nigeria’s oldest development finance programs and a vital tool for transforming the agricultural sector.

He emphasized that the agricultural sector can no longer rely on “business-as-usual” financing if Nigeria is to attain 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.

“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,” Cardoso said.

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

He added, however, that modern challenges, such as climate risks, insecurity, extended value chains, and the growth of agritech, necessitate the scheme’s evolution.

Cardoso stated that the enhanced ACGSF, with its share capital increased from N3 billion to N50 billion under the amended 2019 Act, should go beyond merely guaranteeing loans to actively facilitating affordable credit for farmers, cooperatives, and agribusinesses.

He urged the new board to focus on financial inclusion, especially for smallholder farmers, women, and youth who encounter the greatest obstacles to accessing credit.

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

Cardoso also advocated for partnerships with microfinance banks, cooperatives, and fintechs to develop tailored financial products.

He emphasized that innovations like group lending, agent banking, and digital credit systems should be leveraged so that lack of collateral or geographic location “is no longer an insurmountable barrier” to accessing financing.

To tackle the issue of delayed loan repayments, the CBN governor urged the use of robust oversight measures for guaranteed loans, employing tools such as satellite imagery, digital dashboards, and data-driven assessments.