Agricultural Loans in Nigeria 2022/2023| Requirements & How to Apply

Agricultural Loans in Nigeria. Are you an entrepreneur in the Agricultural Sector and do you wish to access loans available in this sector? Here are some important points to consider when considering Nigerian Agricultural Loan.

Agricultural Sector in Nigeria is one of the leading sectors providing an economic boost for the nation as it serves as the principal source of livelihood for more than half the population of Nigeria, especially in the rural communities.

Nigeria, one of the developing African countries, has decided to eliminate growth constraints and build skills that encourage growth and help its market value through the introduction and implementation of various Agricultural loans, schemes, and credits especially for Micro, Small and Medium Enterprises(MSMEs) through it’s an aid in capital formation and upgrade of technology facilities to the farmers for massive production rate.

Agricultural Loans in Nigeria are offered to Farmers in Nigeria with the aim of aiding the growth of the Agricultural Sector and it’s contribution to the economic development of Nigeria as a Nation. It seeks to offer farmers farming and irrigation equipment purchased, crops for cultivation, and other activities that will be required for Agricultural growth and development.

In recent times, Nigeria’s agricultural sector has been given utmost priority  by the Federal Government,hence making Agricultural loans accessible  and also available in agri-related sectors such as animal husbandry, horticulture, apiculture, aquaculture,silk farming and floriculture.

Types of Agricultural Loans Schemes in Nigeria.

There are several Agricultural Loan schemes in Nigeria. They include:

  • Agricultural Credit Support Scheme (ACSS)–  The Agricultural Credit Support Scheme,ACSS, is one of the Agricultural Loan scheme initiated by the Nigerian Government though the Central Bank of Nigeria, CBN, with the participations of some commercial banks and financial institutions in other to help farmers, both established or aspiring farmers with good business plans and ideas exploit the untapped potentials of the nation. It is aimed at reducing the poverty level in the country especially in the rural communities, reduce inflation, reduce the cost of food items(Agricultural product), and possibly increase surplus rate for exportation as a result increasing Nigeria’s foreign exchange earnings and also diversifying the country’s revenue base. The scheme also operates at the National level using a central implementation committee (CIC) while at the Federal Capital Territory (FCT) and state levels,the scheme works using the state implementation. This is to make sure that the objectives of the scheme is realized. It is mostly for small and medium scale agro- enterprises.
  • Commercial Agriculture Credit Scheme(CACS)- The Central Bank of Nigeria CBN in fulfilling it’s aim and agenda of providing economic stability works with the Federal Ministry of Agriculture and Water Resources to implement  the Commercial Agriculture Credit Scheme(CACS) in 2009 in other to create financial aid for Nigeria’s Agricultural value value chain which include production, processing, storage and marketing) as the increased production arising from such Agricultural product could enhance and control the inflation of goods in the country. It is mostly targeted at large scale commercial farmers.
  • Agricultural Credit Guarantee Scheme Fund(ACGSF)-  The Agricultural Credit Guarantee Scheme Fund ACGSF was created in line with the  Decree No. 20 of 1977 and started  it’s Operations in April,1978 with about 85.6 – 100 Million and it’s Capital base was then later increased to 3Billion in March,2001. This was to ensure that credit facilities are extended to Nigerian Farmers up to about 75percent of the needed fund even with little collateral conditions.

Importance of Agricultural Loans.

  • It helps provide Loans with interest rate as low as 8.80 – 9 percent interest rate as it is aimed at increase and update the technological methods implored by farmers. In some cases, when loan is paid on time
  • Most Agricultural Credit Scheme or Loans has a quick processing period when compared to other schemes making access  very easy.
  • It has a long period expected to return the loan, in which Small and Medium Enterprises within the Agricultural Sector could have maximized the funding and loan and gotten  a reasonable outcome from it.
  • It helps farmers with Capita formation especially farmers in the rural communities.
  • It aims at providing Agricultural development of the Agricultural Sector in Nigeria as it provides credit facilities to large scale commercial farmers at a low interest rate.
  • Agricultural Credit and Loan Scheme ensures national food security as it reduces the cost of Agricultural product ,hence regulating inflation.
  • Since majority of Nigerian are given to farming,it reduces unemployment rate.

Who is eligible to apply for Agricultural Loans.

Anyone who is into Agricultural business of any kind can apply. It could range from crop cultivation to fishery and even animal husbandry.

Some companies such as Liability companies that are concerned with agriculture and it’s relative activities can also apply especially for CACS loans.


Bank of Agriculture, BOA Loan in Nigeria.

The Bank of Agriculture, BOA, in Nigeria is one of the major means through which Agricultural fundings are provided by the Federal Government apart from the platform of the Central Bank of Nigeria CBN.

The Bank of Agriculture in Nigeria see to it that emerging agro-enterprises and established farmers are given the much adequate needed aid and funding for their businesses when they meet up with their criteria and eligibility.

Central Bank of Nigeria Agricultural Loans.

The Central Bank of Nigeria CBN collaborates with the Federal Government, Bank of Agriculture BOA and commercial banks to give funds, grants and loans to farmers and businesses involved in agro related activities, products and services as its means of maintains financial stability within the country and control inflation.

Recently, a sum of 75 billion naira has be awarded to the Bank of Agriculture in other to fulfill the much needed fundings to Farmers and agro-businesses.

Banks involved with Agricultural Loans and schemes.

The Federal Government partners with commercial banks through the help of BOA to implement its Agricultural Loans schemes and they include : First Bank, UBA, Union Bank, Stanbic Bank, Access Bank, Zenith Bank.

Loans Requirements

It is dependent on the kind of loan you are applying but the basic requirements include:

  • A good business plan
  • Collateral except for AGSMEIS.
  • Application request for the loan or credit facility
  • Certificate of Incorporation
  • A minimum of 20 percent of partial payment of the loan
  • Bank statement at least on the last 6months.

Are there Agricultural Loans that don’t require collateral and have low interest rates?

There are schemes being incorporated by the Central Bank of Nigeria into the Agricultural Sector that required no collateral and grants loans and fundings at an interest rate of 5 percent. One of such scheme is the Agric Business Small and Medium Enterprises Investment Scheme (AGSMEIS). The scheme was first introduced and approved at the 31st meeting held on the 9th of February,2017 by the Senate, requiring all banks in Nigeria to set aside 5 percent of their profit annually after payment of their tax.

Requirements for AGSMEIS Scheme.

  • Your business should be registered with CAC
  • Evidence of Tax payments
  • BVN
  • Letter of Guaranty from Guarantors
  • Certification of an EDI
  • Passport photo of you and guarantor
  • Valid ID card.

How do I apply for a Loan in Agriculture

Applying for Agricultural Loans and schemes depends on the kind of scheme and loan program and procedures of the bank you are applying through. However, it follows the same procedure required for processing a loan.

Agriculture is one of the biggest economic revenue in Nigeria and the Federal Government in partnership with the Bank of Agriculture BOA, central Bank of Nigeria CBN and  some commercial banks are implementing new initiatives in other to help bring stability in the nations economy especially the Agricultural Sector.













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