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How To Source For Agricultural Loans in Nigeria


The agricultural industry in Nigeria is extremely profitable and also vital to the development of the country, as evidenced by the fact that over 70% of Nigeria’s population is engaged in the agricultural industry.

Aside from crude oil, agriculture has been the lifeblood of Nigeria, despite the fact that the industry is lagging behind in so many areas. Agriculture has provided the populace with a means of subsistence due to widespread unemployment.

Agriculture in Nigeria represents an untapped opportunity for investors; the time has come for Nigerians to rely on other sources of income other than crude oil, as evidenced by the increase in our agricultural exports over the last three years, which is a testament to this.


Agriculture in Nigeria has tremendous potential, and a large number of youths, small and medium-sized enterprises (SMEs), and investors are constantly engaging themselves in this industry. However, one of the major challenges they face is obtaining the necessary capital to start or expand their agricultural businesses. Do not be worried! This post was written in order to resolve that problem.

In this post, “How to source for Agricultural Loans in Nigeria,” you will find the most up-to-date information on where to obtain Agricultural Loans in Nigeria to start or expand your agricultural business in Nigeria.

There are a few number of public and private sector agricultural loan opportunities available, and I will highlight some of them in this post so that you can select the agricultural loan facilitator that best suits your needs.


Now let’s get started…..

Note: Please keep in mind that while this post aims to provide information on where a Nigerian can apply for an agricultural loan, it does not guarantee that you will be approved for the loan, nor is Unstoppables.ng affiliated with any of the loan facilitation companies. This information is being provided for educational and reference purposes only.

Are you looking for agricultural loans in Nigeria? Here are the top agricultural loans in Nigeria.

  • CBN Agriculture Credit Scheme
  • BOA – Bank of Agriculture

CBN Agriculture Credit Scheme

The Central Bank of Nigeria provides agricultural credit facilities, and it is currently engaged in three agricultural credit schemes, which are as follows:

  1. Commercial Agriculture Credit Scheme (CACS)
  2. Agricultural Credit Guarantee Scheme Fund (ACGSF)
  3. Agricultural Credit Support Scheme (ACSS)

Commercial Agriculture Credit Scheme (CACS)

In 2009, the Central Bank of Nigeria (CBN), in collaboration with the Federal Ministry of Agriculture and Water Resources (FMA&WR), established the Commercial Agriculture Credit Scheme (CACS) to provide financing for the country’s agricultural value chain as part of its developmental role in the country (production, processing, storage and marketing). Increased production as a result of the intervention would help to keep inflationary pressures under control and help the Bank of England achieve its goal of price stability in the country. These are the primary objectives of the Scheme:

  • To Provide credit facilities to large-scale commercial farmers at a single-digit interest rate in order to accelerate the development of the agricultural sector of the Nigerian economy.
  • In order to improve national food security, the government must increase food supply while simultaneously lowering the prices of agricultural produce and products, thereby promoting low food inflation.
  • Reduce the cost of credit in agricultural production to enable farmers to take advantage of the sector’s untapped potential; and
  • On a long-term basis, it is necessary to increase output, create employment, diversify Nigeria’s revenue base, raise the level of foreign exchange earnings, and provide inputs for manufacturing and processing.

The Scheme, which is a sub-component of the Federal Government of Nigeria’s Commercial Agriculture Development Programme (CADP), is financed through the Debt Management Office’s N200 billion bond issue. The Scheme disburses loans to eligible entities at a maximum rate of 9%. The Central Bank of Nigeria bears the subsidy resulting from the difference between the stipulated rate and market rate on all loans granted, as well as the Scheme’s administrative costs.


Agricultural Credit Guarantee Scheme Fund (ACGSF)

The ACGSF was established in April 1978 by Decree No. 20 of 1977. It began with a share capital of N100 million and a paid-up capital of N85.6 million. The Federal Government owns 60% of the shares, while the Central Bank of Nigeria owns 40%.

In March 2001, the Scheme’s capital base was increased to N3 billion. The Fund guarantees bank-to-bank credit facilities extended to farmers up to 75% of the defaulted amount, net of any security realised.

The Fund is administered by the Central Bank of Nigeria, which is responsible for the Scheme’s day-to-day operations. The Guidelines specify the types of enterprises that are eligible to receive guarantees under the Scheme.


Application forms for the Scheme are available at participating banks’ branches throughout the country.

Agricultural Credit Support Scheme (ACSS)

The ACSS is a joint initiative of the Federal Government and the Central Bank of Nigeria, with the Bankers Committee’s active support and participation. The Scheme is required to maintain a prescribed fund of N50.0 billion. ACSS was introduced to enable farmers to tap into the agricultural sector’s untapped potential, to combat inflation, to reduce the cost of agricultural production (i.e. food items), to generate surplus for export, to increase Nigeria’s foreign earnings, and to diversify the country’s revenue base. At the national level, the scheme is administered by a Central Implementation Committee (CIC), while at the Federal Capital Territory (FCT) and state levels, it is administered by State Implementation Committees (SICs), which are established to ensure that the scheme’s objectives are achieved without impediment.

To apply for loans under the ACSS, applicants (practising farmers and agro-allied entrepreneurs with means) are encouraged to approach their banks via their state chapters of farmers associations and State Implementation Committees. However, large-scale farmers are permitted to apply directly to banks under the scheme’s guidelines.


ACSS funds are distributed to farmers and agro-allied entrepreneurs at an interest rate in the low single digits of 8%. At the start of the project’s support, banks will make loans to qualified applicants at a rate of 14.0 percent. Applicants who repay their facilities on time will receive a 6.0 percent rebate, bringing the effective rate of interest paid by farmers down to 8.0 percent.

Bank of Agriculture (BOA)

Bank of Agriculture (BOA) Limited was established in 1972 under the name Nigerian Agricultural Bank (NAB) and began operations in 1973. To reflect a broader mandate, the institution’s name was changed to Nigerian Agricultural and Co-operative Bank (NACB) Limited in 1978. In October 2001, as part of the Federal Government’s efforts to streamline its agencies’ operations, the NACB, the People’s Bank of Nigeria (PBN), and the Family Economic Advancement Programme’s (FEAP) risk assets were merged to form the Nigerian Agricultural, Co-operative Rural Development Bank (NACRDB) Limited. Ten years later, in October 2010, as part of its Institutional Transformation Programme, the Bank rebranded and adopted the new name Bank of Agriculture (BOA) Limited.

  • Agricultural credit is available to support all agricultural value chain activities.
  • Provision of microcredit in non-agricultural sectors
  • Mobilization of savings
  • Capacity building through the promotion of cooperatives and agricultural information systems, as well as the provision of technical assistance and extension services.
  • Provision of self-employment opportunities in rural areas, with the goal of reducing rural-urban migration.
  • Banking habits are being instilled at the grass-roots level of Nigerian society.


Acquiring an agricultural credit facility in Nigeria is not as simple as some claim. To qualify for an Agricultural Loan, you must be a member of an agricultural group, cooperative, or association, and the group must request agricultural credit from the chosen scheme in this manner.


To apply for the agricultural loan schemes mentioned above, contact your commercial bank; those seeking agricultural credit facilitation from the Bank of Agriculture should visit any branch in their area and inquire about the application process for the type of agricultural loan desired.


This concludes this post; I hope you now understand what and where to look for Agricultural Loans in Nigeria, as well as the various schemes available. Kindly forward this article to your friends. We appreciate your time in reading.

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