Cardoso Unveils Plan To Close Agricultural Credit Gap

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, on Tuesday unveiled what he described as a bold and transformative agenda to overhaul agricultural financing in the country, declaring that the era of neglecting farmers in the nation’s credit system must come to an end.

Speaking at the inauguration of the newly constituted Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja, Cardoso said the initiative marks a “new dawn” for Nigeria’s agricultural economy. He noted that although agriculture contributes more than 20 per cent of the nation’s GDP and employs nearly two-thirds of its workforce, the sector receives less than five per cent of total lending from financial institutions.

Cardoso said this long-standing anomaly had undermined national productivity and weakened food security, insisting that the ACGSF must now assume a far more strategic and interventionist role.
Established in 1977, the Scheme guarantees up to 75 per cent of agricultural loans issued by banks, but the CBN governor stressed that the modern realities of agriculture—including technology, complex value chains, climate shocks and security risks—demand new thinking and stronger leadership.

“With today’s inauguration, we signal our refusal to accept business-as-usual,” Cardoso said. “Millions of smallholder farmers who feed our nation are still locked out of affordable credit. This Board must radically expand the reach of the Scheme so that every hardworking farmer with a viable project can be bankable.”

He said the Scheme’s recent enhancement—through the 2019 amendment that raised its share capital from N3 billion to N50 billion and broadened its governance structure—now provides a solid foundation for deeper reforms.

The governor emphasised that the inclusion of farmer representatives on the Board would help ensure that policies reflect the real challenges and opportunities within the sector.

Outlining his expectations for the new Board, Cardoso identified three urgent priority areas, beginning with aggressive financial inclusion. He noted that women and youth remain the most underserved despite playing critical roles in agricultural production.

Citing studies showing that nearly 60 per cent of rural women lack access to mobile internet, he called for partnerships with microfinance institutions, cooperatives and fintechs to design credit products suited to underserved communities.

“The goal is to ensure that no farmer is denied access to financing simply because of location, lack of collateral, or limited digital access,” he said.

Cardoso also called for improved oversight, monitoring and evaluation of guaranteed loans, stressing that technology must play a central role in tracking performance and ensuring accountability. He suggested that tools such as satellite imagery and digital dashboards should be deployed to monitor crop progress, loan disbursement and repayment trends.

According to him, a rigorous monitoring framework would help identify bottlenecks, prevent misuse of funds, guide policy adjustments and generate evidence of the Scheme’s contribution to food production, farm incomes and economic diversification.

The CBN governor reaffirmed the institution’s commitment to supporting the Board, describing the agricultural sector as the cornerstone of Nigeria’s long-term economic transformation under the federal government’s Renewed Hope agenda.

“Transforming the agricultural value chain may appear daunting, but our determination to succeed is even stronger,” he said. “We must build a future where every field yields its full potential and every Nigerian enjoys abundant, affordable food.”

Cardoso congratulated the new Board members, urging them to bring innovation, integrity and unwavering focus to their duties. He expressed confidence that the Scheme—properly repositioned—will drive a major shift in agricultural lending and rural prosperity.