Cardoso unveils revamped ACGSF, pushes tech-driven financing to strengthen food security
The Central Bank of Nigeria (CBN) has announced a renewed strategic direction aimed at widening credit access for smallholder farmers and accelerating the country’s food security agenda.
The plan was unveiled in Abuja on Tuesday during the launch of the reconstituted Agricultural Credit Guarantee Scheme Fund (ACGSF), where CBN Governor Olayemi Cardoso described the initiative as “a new dawn” for agricultural financing in Nigeria.
Cardoso explained that the revamped scheme aligns with the Federal Government’s commitment to reposition agriculture as a catalyst for inclusive growth, rural prosperity and national economic diversification. He noted that although the ACGSF, established in 1977 has been one of Nigeria’s most influential development finance instruments, the sector’s credit access remains disproportionately low.
Despite employing almost two-thirds of Nigeria’s labour force and contributing more than 20 percent to national GDP, agriculture currently receives less than five percent of total bank lending, a gap Cardoso said has constrained millions of small-scale farmers for decades.
According to the CBN Governor, Nigeria’s agricultural sector has evolved far beyond traditional subsistence farming and is now shaped by integrated value chains, climate challenges, digital tools, and a rapidly expanding agritech industry. As a result, he stressed that the Scheme must transition into a modern, data-driven institution capable of supporting today’s realities.
Cardoso highlighted a key reform introduced through the 2019 amendment to the ACGSF Act, which expanded the Scheme’s share capital from ₦3 billion to ₦50 billion and broadened its operational scope. He also pointed to the inclusion of farmers’ representatives on the newly inaugurated Board as an “inclusive and strategic” move that ensures policy decisions reflect on-the-ground realities in the agricultural economy.
The Governor reiterated that the central objective of the overhaul is to unlock affordable and accessible credit for smallholders, who contribute roughly 90 percent of the country’s agricultural output but remain financially excluded due to inadequate collateral, poor credit records, and limited formal banking access.
Cardoso tasked the Board, chaired by Olusegun Oshin, with designing innovative loan products targeted at women, youth, and other underserved farming groups. He further encouraged partnerships with fintech companies, microfinance banks and cooperatives to deliver flexible lending models suited to rural communities.
He also underscored the importance of technology deployment, ranging from satellite imagery to digital monitoring dashboards to track loan disbursement, utilisation, and overall impact on food production.
