Nigeria’s push to fix its broken agricultural financing system just got a major boost. On Tuesday (December 9, 2025), Central Bank Governor Olayemi Cardoso inaugurated a reconstituted Board for the Agricultural Credit Guarantee Scheme Fund (ACGSF) and he didn’t mince words: “Business-as-usual financing is no longer acceptable,” he said.
For a sector that contributes over 20% of GDP and employs nearly two thirds of the workforce, the fact that it receives less than 5% of total bank lending is, concerning.
Cardoso’s message was simple: if Nigeria wants food security, growth, and rural prosperity, credit must start flowing to the people who grow the food.
Why the ACGSF Matters Right Now
The ACGSF isn’t new. Established in 1977, it guarantees up to 75% of agricultural loans, giving banks the confidence to lend to farmers who would otherwise be considered too risky.
But Nigeria’s realities have changed:
- Climate shocks keep hitting farmers.
- Value chains are longer and more complex.
- Insecurity increases lending risk.
- Agritech is changing how farmers operate.
In short: the old model can’t handle today’s challenges.
That is why the 2019 amendment which expanded the Fund’s share capital from ₦3 billion to ₦50 billion and introduced farmer representation is now being activated with a stronger board and a clearer mandate.
Meet the New ACGSF Board
The new board, chaired by Dr. Olusegun Oshin, brings together experts from academia, banking, engineering, agribusiness and public policy.
Other members include:
1. Prof. Murtala Sabo Sagagi
2. Dr. Nneka Onyeali-Ikpe
3. Engr. Frank Satumari Kudla
4. Ms. Olusola Sowemimo
5. Ms. Adetoun Abbi-Olaniyan
6. Mr. Wondi Philip Ndanusa
Their task? Make agricultural credit accessible, transparent, and effective.
Cardoso’s Big Message: Fix the Credit Gap or Forget Food Security
Cardoso essentially called out the banking sector: agriculture cannot keep receiving scraps.
His key priority areas include:
1. Target underserved farmers: Women, young farmers, and smallholders face the highest barriers. Nearly 60% of rural women don’t use mobile internet, cutting them off from digital financial services.
The board is expected to work with microfinance banks, cooperatives, and fintechs to design rural-friendly lending products.
2. Use technology for real-time monitoring: Cardoso wants loan monitoring to shift from guesswork to data-driven tracking using:
- Satellite imagery
- Digital dashboards
- Real-time repayment analytics
The goal: ensure “every naira guaranteed delivers real value on the farm and in the marketplace.”
3. Increase accountability and transparency: No more “disburse-and-pray.” The board must track crop performance, loan utilisation, and repayment trends to spot risks early and measure actual outcomes.
A Wider Push for Agric Reform
Cardoso’s move aligns with the Federal Government’s broader agricultural shake-up. Just days earlier, President Bola Tinubu appointed new boards for the:
• Bank of Agriculture (BOA)
• National Agricultural Development Fund (NADF)
These institutions will work alongside the ACGSF to rebuild confidence in Nigeria’s agricultural financing system.
The Bigger Picture: Agriculture Is Already Lifting GDP
Nigeria’s economy grew 3.98% in Q3 2025, supported heavily by agriculture and industry.
Key stats:
• Agriculture grew 3.79%, up from 2.55% in Q3 2024.
• Crop production alone makes up 66% of the sector.
• Nominal growth hit 3.18%, despite year-on-year declines.
Translation: The sector is working but it could work much faster with better financing.
Why This Matters for Farmers and the Economy
If the strengthened ACGSF delivers:
More affordable credit
Better monitoring
Tech-enabled transparency
Products designed for real farmers (not boardroom farmers)
Nigeria could unlock investment in:
Irrigation
Mechanisation
Post-harvest storage
Processing and value addition
Agritech adoption
This is how you shift from subsistence farming to a modern, resilient, investment-ready agricultural economy.
Final Take
Cardoso’s message was clear and firm: agriculture can no longer survive on goodwill, it needs real financing, backed by modern systems and strict accountability.
With a reconstituted board, expanded mandate and government backing, the ACGSF is being positioned as a cornerstone of Nigeria’s agricultural transformation.
If the reforms work:
• Farmers win.
• Food supply stabilises.
• The economy grows.
And Nigeria finally stops playing catch-up on food security.
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