The All Farmers Association of Nigeria (AFAN) has hailed the inauguration of the Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) as a major step toward revitalising agricultural financing and strengthening food production across the country.
In a statement issued by its National President, Muhammed Magaji Gettado, the association said the Central Bank of Nigeria’s (CBN) decision to inaugurate the Board comes at a crucial time, as farmers continue to grapple with the effects of climate change, escalating production costs, security challenges, and inadequate access to affordable credit.
AFAN noted that the ACGSF remains a critical tool for closing persistent financing gaps in the agricultural sector by reducing lending risks for financial institutions and encouraging greater investment in farming and agribusiness.
The association explained that the scheme’s provision of up to 75 per cent loan guarantees has helped boost confidence among lenders, making it easier for farmers and agribusiness operators to access funding.
Gettado emphasised that improved access to credit is key to increasing productivity, stabilising food markets, and strengthening national food supply. He welcomed the inclusion of a farmers’ representative on the newly inaugurated Board, describing it as a timely and strategic decision that will ensure policies reflect the realities of farmers at the grassroots.
According to him, the inauguration of the Board marks a new chapter for agricultural financing, noting that it also addresses a long-standing leadership vacuum within the scheme.
He reaffirmed AFAN’s commitment to mobilising and educating farmers nationwide, particularly smallholder farmers, on how to take advantage of financing opportunities available through the ACGSF.
The association further pledged to work closely with the CBN and other stakeholders to deploy digital tools for farmer identification, farm mapping, and data verification, aimed at improving transparency, accountability, and loan recovery while ensuring genuine farmers benefit from the scheme.
In line with the Federal Government’s Renewed Hope Agenda, AFAN commended the CBN’s directive for the Board to adopt more flexible collateral requirements to ease the financial burden on smallholder farmers.
AFAN highlighted that small-scale farmers make up more than 80 per cent of Nigeria’s agricultural workforce and contribute about 90 per cent of total food production, warning that limited access to finance for this group poses a serious threat to food security.
The association called on the ACGSF Board to deepen financial inclusion by strengthening partnerships with microfinance banks, cooperatives, fintech companies, and value-chain stakeholders, while also enhancing monitoring systems through data-driven approaches.
AFAN expressed optimism that with effective leadership, innovation, and collaboration, the ACGSF will continue to play a pivotal role in driving Nigeria’s agricultural transformation.
The association congratulated the Chairman and members of the newly inaugurated Board and assured that Nigerian farmers are prepared to responsibly access and utilise credit to boost productivity, build resilience, and ensure sustainable food security nationwide.