The Central Bank of Nigeria is aiming to raise agricultural lending beyond the current threshold of less than five per cent of banks’ total credit, as Governor Olayemi Cardoso emphasised that agriculture must regain its rightful place in national economic planning. Speaking in Abuja at the inauguration of the newly constituted Board of the Agricultural Credit Guarantee Scheme Fund, Cardoso described the move as a defining step toward repositioning agricultural finance, noting that the sector contributes over one-fifth of Nigeria’s GDP yet receives a disproportionately small share of credit from banks.
He said limited access to funding continues to suppress productivity and expansion for millions of farmers, insisting that the country must move past the “business-as-usual” approach and adopt a future where agriculture is prioritised. Cardoso outlined that the fund, which guarantees up to 75 per cent of agricultural loans, has historically enabled banks to support farmers considered too risky. He added that it has become more inclusive following the 2019 amendment that raised its share capital from N3bn to N50bn and expanded its mandate to accommodate farmers’ representatives on the board.
Cardoso said the CBN’s renewed drive aligns with the Federal Government’s agenda to build a resilient and technologically driven agricultural sector capable of ensuring food security, reducing poverty, and generating wealth for Nigerians. He emphasised that smallholder farmers, who make up 80 per cent of the farming population and produce about 90 per cent of the country’s food, must be better supported, as many still lack collateral and credit history.
Chairman of the new board, Olusegun Oshin, said the scheme must direct resources to grassroots farmers who remain shut out of credit systems and lack basic storage facilities. He noted that many smallholders, despite feeding the country, operate in remote areas with minimal access to finance or infrastructure to preserve their harvests.
Stakeholders at the inauguration said boosting agricultural lending and expanding the credit guarantee scheme could unlock growth for MSMEs in the agricultural value chain, strengthen food production, and build rural prosperity across Nigeria.
