The Central Bank of Nigeria (CBN) has urged the Minister of Finance and Coordinating Minister of the Economy, Yomi Edun to urgently reconstitute the board of the Agricultural Credit Guaranty Scheme Fund (ACGSF).
The CBN governor issued the communication in a letter dated March 6, 2025 with reference no. CSD/DIR/CON/DCS/023/021.
In the letter, the CBN governor also urged the minister to take necessary steps required to retool the Fund in order to intervene in the agricultural value chain.
“The absence of a Board has led to delays in policy formulation, approval of key strategic initiatives and the general oversight required it operates optimally in supporting agricultural financing in Nigeria,” the governor stressed.
To fill this void, the the apex bank encouraged the ministry to pay up the balance of N28,199,196,000 being its equity stake in the recapitalised share base of N50billion.
The Fund is owned 60 percent by the Federal Ministry of Finance (FMF) and 40 percent by the CBN.
Out of its allotted share of N30billion, the FMF has paid up N1,800,804,000, leaving a balance of N28,199,196,000.
Second, the apex bank also urged the Minister of Finance to expedite the process by appointing individuals to fill up vacancies in the board of the Fund.
By provisions of the ACGSF (amended) Act 2019, the FMF is to appoint four directors to the board of the Fund.
The Ministry of Finance is to appoint the Chairman of the Fund. The ministry is also to appoint the representative of the Nigerian farmers.
Others are the Representative of the Ministry of Finance and representative of the Federal Ministry of Agriculture.
The CBN governor explained in the letter that the ACGSF was established via Decree No. 20 of 1977 (now an Act), with the sole mandate to provide guarantee to agricultural loans.
The Fund has been without a board since the dissolution of Boards of Agencies of government at the inception of the Tinubu Presidency in May 2023.
The CBN regretted that the absence of a board has resulted in “delays in policy formulation, approval of key strategic initiatives and the general oversight required it operates optimally in supporting agricultural financing in Nigeria.”
