FRI NOV 13 2026-theGBJournal| Nigeria’s central bank is seeking to use a revamped agricultural credit guarantee scheme to attract private investment into farming, betting that improved risk-sharing and digital processing can persuade lenders to finance a sector long viewed as risky.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said public resources alone could not meet the country’s agricultural financing needs and guarantees should unlock more commercial and development finance.
Cardoso was represented by Deputy Governor Lamido Yuguda at a two-day stakeholder roundtable in Abuja on Tuesday.
“Our objective should be to crowd private capital in, not crowd it out,” Cardoso said, according to his address.
The CBN unveiled an online portal for the Agricultural Credit Guarantee Scheme Fund (ACGSF), a new brand identity, draft revised guidelines and proposed strategic partnerships.
The portal is intended to speed processing, improve transparency and sharpen lenders’ risk assessments.
Cardoso identified climate shocks, volatile commodity prices, inadequate collateral, information gaps and the seasonal nature of farming as barriers to lending.
The CBN is advocating closer coordination among banks, insurers, development finance institutions and government agencies, alongside climate-risk management and data-based credit assessments.
ACGSF Board Chairman Olusegun Oshin said the scheme was considering co-financing, refinancing and agricultural insurance to improve access to credit. He has also cited high interest rates and repayment structures that do not reflect farm production cycles as constraints.
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