CBN unveils oline portal, moves to boost agricultural credit guarantees

Abdullateef Fowewe

The Central Bank of Nigeria is strengthening agricultural credit guarantees to improve farmers’ access to affordable financing, reduce lending risks and draw more private-sector investment into agriculture.

In a statement on Thursday, the bank said it is seeking to reinforce the long-running Agricultural Credit Guarantee Scheme Fund (ACGSF) as a key tool for expanding credit to the sector.

“The Central Bank of Nigeria (CBN) is seeking to strengthen agricultural credit guarantees to improve farmers’ access to affordable financing, reduce lending risks and attract more private-sector investment into agriculture,” the CBN posted.

Speaking at a two-day stakeholder roundtable in Abuja, CBN Governor Olayemi Cardoso, represented by Deputy Governor for Financial System Stability Lamido Yuguda, called for stronger partnerships, improved risk-sharing mechanisms and market-driven financing solutions to support sustainable agricultural development.

A major highlight of the event was the unveiling of the ACGSF Online Portal, designed to simplify access to agricultural credit and improve the scheme’s operations.

Stakeholders at the roundtable reaffirmed their commitment to expanding agricultural financing, strengthening food security and driving inclusive economic growth in Nigeria.

The Agricultural Credit Guarantee Scheme Fund was established by Decree No. 20 of 1977 and became operational in April 1978. It is jointly funded by the Federal Government (60 per cent) and the Central Bank of Nigeria (40 per cent), with a share capital of ₦50 billion.

The scheme, managed by the CBN, guarantees up to 75 per cent of the net amount in default on loans granted by participating banks and microfinance institutions for agricultural purposes.

This risk-sharing arrangement is intended to encourage lenders to extend more credit to farmers and agribusinesses across the value chain, including crop production, livestock, processing and marketing.

The latest reforms, including the new digital portal and revised guidelines, form part of efforts to reposition the decades-old scheme as a catalyst for private capital rather than solely a lender-protection tool.

The initiative comes amid ongoing focus on boosting domestic food production and reducing financing barriers for smallholder farmers and agribusiness operators.