Cardoso Inaugurates ACGSF Board, Seeks Stronger Support for Smallholder Farmers

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, on Tuesday inaugurated the newly constituted Board of Directors of the Agricultural Credit Guarantee Scheme Fund (ACGSF), to deepen support for smallholder farmers and reposition the scheme as a driver of food security and rural livelihoods.

The event, held at the CBN Headquarters in Abuja, marked what Cardoso described as a renewed national commitment to strengthening one of Nigeria’s most enduring agricultural finance programmes.

Established in 1977, the ACGSF provides credit guarantees to farmers, covering up to 75 per cent of loans issued by banks to the agricultural sector.

Cardoso noted that while the scheme has expanded access to finance and supported food production for decades, Nigeria’s agricultural sector continues to face significant structural challenges.

He expressed concern that although agriculture accounts for more than one-third of Nigeria’s GDP and employs the majority of the population, less than five per cent of formal bank credit goes to the sector.

“This persistent financing gap limits productivity and weakens food security,” the governor said. “Smallholder farmers, who account for nearly 80 per cent of agricultural producers, still face major barriers to affordable credit.”

According to him, the current realities of climate change, security threats, digital innovation and evolving value chains demand a technologically enabled and strategically repositioned ACGSF.

He highlighted amendments to the ACGSF Act in 2019, which expanded the scheme’s share capital to ₦50 billion and broadened its financing scope, as a foundation for deeper reforms.

Cardoso urged the new board to prioritise three strategic focus areas: expanding access to finance for women and youth in agriculture, strengthening data-driven monitoring and oversight mechanisms, and enhancing institutional efficiency through insurance linkages and capacity building for borrowers.

“The ACGSF must evolve into an active catalyst for value chain development and rural prosperity,” he said. “With integrity, innovation and disciplined execution, the scheme can once again serve as a flagship engine of inclusive agricultural growth.”

He reaffirmed the CBN’s commitment to supporting the board’s mandate and pledged continued collaboration to strengthen agricultural finance systems capable of sustaining national food security goals.

Following his address, Cardoso formally declared the new board inaugurated, after which the Secretary of the Board presented official documents to the new Chairman.

In his brief remarks, the Chairman of the Board, Dr. Olusegun Oshin, expressed appreciation for the confidence reposed in the members and pledged to drive reforms that would increase farmer access to guaranteed credit and ensure transparency in the management of the fund.

Economic Confidential reports that ACGSF is a federal intervention scheme created under Decree No. 20 of 1977 to encourage commercial banks to lend to farmers engaged in agricultural production and related value chain activities.

The Fund is jointly managed by the Federal Government and the CBN, with contributions in a 60:40 ratio, while the CBN serves as both Managing Agent and Secretariat.