Nigeria's Central Bank of Nigeria Agricultural Credit Guarantee Scheme Fund (ACGSF) has been in operation since 1978, and yet surveys consistently show that fewer than 8% of eligible farmers are aware of it. For those who are aware, the paperwork and process can seem daunting. Our Agribusiness Advisory team has helped over 200 agri-enterprises access formal finance, and we want to share the process in plain terms.
The scheme works as follows: when a registered financial institution lends to an agricultural enterprise, the CBN guarantees 75% of the loan value against default. This dramatically reduces the bank's risk and makes lenders far more willing to extend credit to agricultural borrowers who lack conventional collateral.
To be eligible, you must be engaged in primary agricultural production or agro-processing. The farm or facility must be located in Nigeria. You must provide a bankable business plan, proof of land tenure or lease, and evidence of relevant experience or training. For cooperative societies, you also need your CAC registration certificate and a record of regular group savings.
The most common reason applications are declined is not insufficient collateral — it is a poorly prepared business plan that fails to demonstrate realistic cash-flow projections and repayment capacity. If you would like our team to prepare or review your application, get in touch through our contact page.