CBN Unveils Fresh Push to Expand Agricultural Lending as Cardoso Sets New Direction
The Central Bank of Nigeria (CBN) has announced a renewed drive to increase agricultural lending, which currently accounts for less than five per cent of banks’ total credit. Governor Olayemi Cardoso said Nigeria must reposition agriculture to take its “rightful place” in the nation’s financial system and development priorities. He stressed that boosting credit to farmers is essential to unlocking the country’s economic potential.
Speaking in Abuja at the inauguration of the new Board of the Agricultural Credit Guarantee Scheme Fund, Cardoso described the moment as a “new dawn for agricultural financing.” Despite agriculture contributing over 20 per cent of Nigeria’s GDP and employing the majority of the population, the governor noted that farmers still receive only a minimal share of formal financing. This, he explained, has long limited productivity and growth across rural communities.
Cardoso highlighted the role of the Agricultural Credit Guarantee Scheme Fund, which guarantees up to 75 per cent of agricultural loans, enabling banks to lend even to farmers considered risky or unbankable. He said the scheme has been strengthened by a 2019 amendment that expanded its capital base from N3bn to N50bn and broadened its mandate. The revised law also introduced a more inclusive board structure, adding farmer representatives to ensure policies reflect realities on the ground.
According to the CBN governor, smallholder farmers remain the backbone of Nigeria’s food system, accounting for 80 per cent of farmers nationwide and producing about 90 per cent of the country’s food. Yet many face steep hurdles in accessing credit due to lack of collateral or formal credit history. Cardoso said this situation is no longer acceptable, especially as the Federal Government’s Renewed Hope agenda pushes for a more resilient, technology-driven, and inclusive agricultural economy.
The newly inaugurated board chairman, Dr. Olusegun Oshin, echoed these concerns, emphasizing that true progress must start at the grassroots. He noted that the poorest farmers—those in remote villages who feed the nation—often struggle without access to credit or proper storage facilities. Oshin said improving financial inclusion and post-harvest support is key to ensuring that farmers can grow sustainably and benefit more from their labour.
source: punch