U.S. Expands Agro Trade Financing For Nigeria

The United States has scaled up support for agricultural trade with Nigeria through the U.S. Department of Agriculture’s Export Credit Guarantee Programme, GSM-102, a move aimed at deepening commercial ties and strengthening food supply chains between both countries.

The GSM-102 programme, which provides U.S. government-backed credit guarantees, is designed to support Nigerian banks and importers in sourcing critical agricultural inputs from the United States, while reducing financial risks associated with cross-border transactions.

The initiative comes amid improving trade relations between Nigeria and the United States, with two-way trade in goods and services hitting nearly $15 billion in 2025, representing a 14 per cent increase from 2024 figures. Agricultural trade has emerged as a major driver of this growth, rising sharply to $764 million from $415 million in 2024, reflecting an 84 per cent surge.

To drive awareness and boost utilisation of the programme, the Foreign Agricultural Service of the U.S. Consulate General convened a two-day stakeholder engagement in Lagos, bringing together key players including officials from the U.S. Department of Agriculture, U.S. International Development Finance Corporation, Nigerian-American Chamber of Commerce, U.S. agricultural exporters, Nigerian banks, and importers.

Speaking at the event, U.S. Consul General Rick Swart described Nigeria as one of America’s most strategic agricultural trade partners on the African continent.

“Under the Trump Administration, we are making a clear shift, from aid to trade,” Swart said. “We’re engaging Nigeria as an outstanding and unique commercial partner. That means we are looking for real-world solutions that foster the kind of business environment that enables entrepreneurs, innovators, and investors to build the future of U.S.-Nigeria commerce.”

Participants at the forum examined how the GSM-102 facility can be leveraged to improve access to the U.S. market, enhance food security, and stimulate job creation across both economies. The sessions also featured business-to-business engagements aimed at converting emerging opportunities into tangible trade deals.

Senior Analyst for the Africa, Middle East, Türkiye, Caucasus, and Central Asia Region at the U.S. Department of Agriculture, Demeteris “Dee” Hale, highlighted the programme’s role in de-risking trade and boosting investor confidence.
“At its core, GSM-102 strengthens market confidence by reducing risk, enabling lenders and exporters to move forward with transactions and expand into new opportunities. We are here to work with financial institutions, importers, exporters, and other stakeholders across the industry to build stronger linkages and drive increased agricultural trade,” Hale stated.

The development follows the restoration of eligibility for Nigerian banks to participate in the GSM-102 programme in late 2025. Since then, selected Nigerian financial institutions have received credit limits, reopening access to U.S.-backed trade financing and further supporting the upward trajectory of bilateral agricultural trade.

The U.S. Mission reiterated its commitment to expanding agricultural trade, fostering private sector growth, and strengthening long-term economic engagement with Nigeria.