Governor of the Central Bank of Nigeria, Olayemi Cardoso | Credit: CBN

By Brandon Moss

The Central Bank of Nigeria (CBN) has pledged to raise agricultural lending above its current level of less than five percent of banks’ credit portfolios, with Governor Olayemi Cardoso insisting that agriculture must assume its “rightful place in our financial system and national priorities.”

Speaking at the inauguration of the newly reconstituted Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) in Abuja, Cardoso described the event as “a defining moment — a bold statement of intent that signals a new dawn for agricultural financing in Nigeria.”

Agriculture: Backbone of the Economy, Starved of Credit

Cardoso underscored agriculture’s central role in Nigeria’s economy, contributing more than 20 percent of GDP and employing the majority of citizens. Yet, he lamented, the sector receives less than five percent of formal bank lending — a chronic underfunding that has stifled productivity and expansion for millions of farmers.

“It is a reassessment of norms: we will no longer accept business‑as‑usual,” he declared. “Instead, we embrace a future where agriculture is accorded its rightful place.”

Strengthening the Credit Guarantee Scheme

The governor highlighted the ACGSF’s long‑standing role in enabling banks to lend to farmers, including those deemed “unbankable.” He noted that reforms following a 2019 amendment expanded the scheme’s share capital from ₦3 billion to ₦50 billion and broadened its mandate.

The revised Act also introduced inclusivity by adding farmers’ representatives to the board. “Such inclusivity is strategic: it enshrines partnership between policymakers, financiers, and the farming community in guiding the Scheme’s activities,” Cardoso said.

Unlocking Opportunities Under Renewed Hope Agenda

Cardoso positioned agriculture at the “crossroads of unprecedented opportunity” under the Federal Government’s Renewed Hope agenda. He outlined a vision of a resilient, technologically advanced, and inclusive agricultural economy that ensures food security, reduces poverty, and creates wealth for millions.

Smallholder farmers — who make up 80 percent of Nigeria’s farming population and produce 90 percent of its food — remain locked out of credit due to lack of collateral or credit history. “We can no longer afford this situation, given that these same smallholders feed our nation and drive our rural economy,” he stressed.

Priorities for the New Board

Cardoso urged the board to focus on strategic priorities that deliver quick impact, including:

• Expanding financial inclusion for women and youth farmers.
• Leveraging microfinance banks, cooperatives, and fintechs to overcome collateral barriers.
• Deploying mobile money, agent banking, and group lending to reach remote communities.
• Using technology — satellite imagery, digital dashboards, and data analytics — to monitor loan performance, crop progress, and risks.

“Every naira guaranteed must deliver real value on the farm and in the marketplace,” he emphasized.

Grassroots Impact and Accountability

Dr. Olusegun Oshin, chairman of the newly inaugurated board, echoed Cardoso’s call for grassroots focus. He stressed that the fund must directly benefit peasant farmers and smallholders who lack credit and storage facilities.

“Those that feed us are the poor farmers in remote villages who don’t have access to credit or proper storage,” Oshin said. He pledged that the board would ensure measurable impact, with transparent reporting and rigorous monitoring to justify additional resources.

Oshin also welcomed the inclusion of agribusiness and allied sectors, noting that technology and accountability would be central to implementation.

Sector Performance

Recent data from the National Bureau of Statistics shows agriculture contributed ₦30.5 trillion in nominal terms to GDP in Q3 2025 — one of its strongest quarterly performances in recent years. Crop production accounted for ₦20.13 trillion, or nearly 66 percent of the total.

The sector posted real GDP growth of 3.79 percent year‑on‑year, surpassing its Q3 2024 growth of 2.55 percent and outperforming Q2 2025’s 2.82 percent, despite limited access to bank credit.

Political Sidebar: NNPP Leadership in Ogun State

In a separate development, the New Nigeria People’s Party (NNPP) re‑elected Femi Aina as chairman of its Ogun State chapter for another four‑year term. The congress, held at the party’s secretariat in Abeokuta, was supervised by INEC officials and security agents.

Aina pledged massive mobilisation ahead of the 2027 elections, vowing to strengthen party unity and representation across groups. “We will ensure equal representation and renewed dedication to deliver Nigerians from the incompetent government of the APC,” he said.

Other executives elected include Alhaja Sakirat Arowolo (Deputy Chairman), Rasaq Segun Sofowora (Secretary), and Mrs Yetunde Akindele (Women Leader).

Prof. Tajudeen Gambo, chair of the organising committee, commended members’ resilience and reiterated NNPP’s ambition to take over leadership nationally in 2027, promising mass‑oriented policies such as free education.