The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established by Decree No. 20 of 1977 and commenced business in April 1978. Its original share capital and paid-up capital were N100 million and N85.6 million respectively. The Federal Government holds 60% and the Central Bank of Nigeria holds 40% of the shares.
The Capital base of the scheme was increased to N3billion in March 2001. The fund guarantees credit facilities extended to farmers by banks, up to 75% of the amount in default net of any security realized.
The significant decline was also recorded both in terms of the volume and value of loans under the scheme in the period under view. For example, the volume of loans worth N100,000 and below declined by 37.14% from 26,825 in 2017 to 16,862.
Nairametrics reported in September that CBN plans to increase funding in the agricultural sector from 4% to 10% of the entire credit in the banking system.