The Central Bank of Nigeria (CBN) has declared its determination to raise agricultural lending beyond the current level of less than five per cent of total banks’ credit, as part of renewed efforts to reposition agriculture at the centre of Nigeria’s economic growth.
CBN Governor, Mr. Olayemi Cardoso, made the declaration on Tuesday in Abuja at the inauguration of the newly constituted Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF).
Describing the event as a major turning point, Cardoso said the inauguration marked “a defining moment a bold statement of intent that signals a new dawn for agricultural financing in Nigeria.”
He stressed that agriculture remains the backbone of the Nigerian economy, contributing more than one-fifth of the country’s Gross Domestic Product (GDP) and employing a majority of Nigerians, yet continues to suffer from severe underfunding.
“Despite its critical role, agriculture receives only a small fraction of formal credit less than five per cent of banks’ total lending goes to the agricultural sector,” Cardoso said.
According to him, this prolonged funding gap has stifled productivity and limited expansion opportunities for millions of Nigerian farmers, thereby weakening food security and rural economic development.
“This is a reassessment of norms: we will no longer accept business-as-usual,” the CBN governor declared. “Instead, we embrace a future where agriculture is accorded its rightful place in our financial system and national priorities.”
Cardoso also highlighted the strategic importance of the Agricultural Credit Guarantee Scheme Fund, which guarantees up to 75 per cent of the value of agricultural loans, noting that the scheme has, for decades, enabled banks to lend to farmers including those considered previously unbankable.
He expressed confidence that the newly inaugurated board would strengthen the effectiveness of the scheme and help unlock more affordable credit for farmers across the agricultural value chain.
Industry analysts say the renewed push by the apex bank could significantly improve food production, rural incomes, job creation and inflation control, if commercial banks respond with increased lending to the sector.
