All you need to know about the AGRIC CREDIT GUARANTEE SCHEME FUND (ACGSF)

All you need to know about the AGRIC CREDIT GUARANTEE SCHEME FUND (ACGSF)


  •  What is the Agric Credit Guarantee Scheme Fund?

It is a scheme managed by Central Bank of Nigeria (CBN). It provides guarantee cover to banks who give loan to the agricultural sector of the economy. This encourages the banks to provide more funding to the farmers. The Scheme has an authorized share capital of N3 billion controlled by the Federal Government (60%) and the CBN (40%).


  • How can you enjoy Agric Credit?

You can go to any commercial bank or Central Bank branch office in Nigeria and make enquiries there.

  •   What do you need to benefit from Agric Credit?

You must be a farmer. You must provide collateral if your loan amount is above N20, 000. The collateral must be in a tangible form or in form of 25% cash security of the intended loan amount in the form of savings.

  • How can a corporate body (State or LGA) use the ACGSF Scheme to benefit its host community?

By the establishment of a Trust Fund with banks that will serve as the platform for lending to the host community: the Trust Fund will form part of the guarantee.

  • How easy is it to benefit from agric credit?

You will need to discuss your proposal with your bank, complete necessary application forms, and provide all the required information including things like size of your farm, project cost, your own financial commitment, expected output returns and profitability of the project.


  • How long can One’s ACGSF loan last?

It depends on the gestation period of the agricultural activity you are engaged in.

  • How many times can I benefit from ACGSF?

As many times as you wish provided you maintained a good track record  for loan repayment with your bank.

  •   Is the ACGSF for only big farmers?

Small farmers have benefited immensely from ACGSF. This group of farmers forms 90% of the beneficiaries since the inception of the scheme.

  • What are the advantages of having collateral under the ACGSF?

It means you can obtain a loan of up to N1.0 million as an individual or up to N10.0 million as a cooperative society or a corporate entity.

  • What are the requirements for benefiting from ACGSF?

You must be a farmer. If your loan application is above N20, 000, the lending bank would require you to provide collateral. The collateral could be in tangible form or in form of 25% cash security of the intended amount.

  • What if you do not have collateral for an ACGSF loan?

You can still obtain a loan of N20, 000.00 and below supported with a personal guarantee from a reputable person in your community or more than N20, 000.00 through being a member of Self Help Group or Cooperative Society.

  • What is the Agricultural Credit Guarantee Scheme Fund?

The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established by Decree No. 20 of 1977 to mitigate the risks of banks in agricultural lending and hence encourage them to continue to extend credit to it. The scheme guarantees 75% of all outstanding loans in case of default, and after realizing the security. The scheme is managed by the CBN, through its Development Finance Department. The scheme has an eight-man board

  • What is the minimum loan covered under ACGSF?

A minimum loan of N20,000.00(twenty thousand naira) and below without collateral. For amounts higher than N20,000.00, you will need to provide collateral.

  • What is the process of obtaining an ACGSF loan?

A farmer intending to obtain a loan must first open account with a bank operating the Agric Credit Guarantee Scheme. You should request for the ACGSF application form, complete and return to the bank. You will provide collateral for the loan amount required except where the loan do{es} not require collateral. Finally, you will also need insurance cover from the Nigerian Agricultural Insurance Corporation (NAIC).

What kind of collateral is acceptable for an ACGSF loan?
You can use cash in the bank, stock and shares, life insurance policies, landed property, debenture, guarantors and any other item acceptable by the lending bank.

  • Which agricultural activities qualify for guarantee under the ACGSF?

The agricultural activities eligible for guarantee under the Scheme include the following:

i)    The establishment or management of the production of rubber, oil palm, cocoa, coffee, tea and similar crops;
ii)    The cultivation or production of cereal crops, tubers, fruits of all kinds, cotton, beans, groundnuts, shea nuts, benniseed, vegetables, pineapples, banana and plantains;
iii)    Animal husbandry viz., poultry, piggery, cattle rearing and the like, fish farming and fish capture and
iv)    Processing in general where it is integrated with at least 50.0 per cent of farm output e.g. cassava to garri, oil palm to palm oil and kernel, groundnut to groundnut oil etc.


  • Will the usual lending rate apply under the ACGSF?

Under the ACGSF, farmers will borrow from lending banks including community banks at market-determined rate.
Source: Central Bank of Nigeria (CBN)

Author Bio


Mrs. Yemisi Akibu ( nee Awokoya) is the Chief Executive Officer of Belvyna Global, an agricultural consultancy service firm based in Lagos, Nigeria She is a former Team Member of the Agricultural Department of Union Bank of Nigeria Plc, one of Nigeria's first generation banks. She holds a B.Sc degree in Agricultural Economics from the University of Ibadan, Nigeria and a Masters degree in National Development and Project Planning from the University of Bradford, West Yorkshire, United Kingdom. She is passionate about the role agriculture plays in the social, economic, political development of a nation. She holds the view that one of the pillars of stability of a nation food security and this can only be achieved through the holistic development of the agricultural sector. She can be contacted via: or Remember, The Farmer Is King Enjoy my blog


  1. Mr Emmanuel Elueme - April 29, 2020

    My name is mr Emmanuel Elueme from Delta state I live in Ogun state I have a cassava farm around me there.I’ve been encouraging young ones around me there to go into farming I have upto 20 people around me who have cultivated this year and we needed loan for for larger production I very also gone for fish farm training which I can do in my house all I need is loan to support me start with those young once to encourage them am working on the site when I m through i will update

  2. Emmanuel elueme - April 29, 2020

    We need at this time to put in polacy that will encourage youth to front farming .this will engage.make them self reliance provide food and secure their future

  3. IDRIS - September 18, 2020

    Please try and give us the loan

  4. Mr Emmanuel - November 12, 2020

    What are the plans of cbn over farmers who are affected with drought. Natural disaster. Weather or climate challenges. No anough rain to make the crops do well my hands was. Input. Herbicides. Fertilizers this is our pli

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