How To Access The Central Bank Of Nigeria’s Agricultural Loan Scheme For Smallholder Farmers

If you’re a smallholder farmer in Nigeria, you know how hard it can be to get money to expand your farm. Banks often ask for collateral you don’t have. Or they say you have no credit history.

The Central Bank of Nigeria (CBN) knows this is a problem. That’s why they have created several loan schemes just for people like you.

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Smallholder farmers produce about 90% of the nation’s food, yet they receive very little support from banks. The good news is that the CBN recently revamped its Agricultural Credit Guarantee Scheme Fund (ACGSF) to make it easier for you to access affordable credit.

This guide walks you through exactly how to apply. No fluff. Just practical steps you can take today.

Which CBN Agricultural Loan Scheme Is Right For You?

There is no one-size-fits-all loan. The CBN has different schemes for different needs. Here are the main ones you should know about.

Agricultural Credit Guarantee Scheme Fund (ACGSF)

This is the oldest and most popular scheme. It was created in 1977 and has been recently revamped to target smallholder farmers like you.

The way it works is simple. The CBN guarantees 75% of any loan a bank gives you for agricultural purposes. This means the bank takes less risk. And when the bank takes less risk, they are more willing to lend to you.

Key benefits: You don’t need traditional collateral. The government guarantee stands in its place.

Who qualifies: Smallholder farmers, medium-scale farmers, and agro-processors.

Maximum guarantee: Up to 75% of your loan amount in case of default.

Interest rebate: You can get up to 40% of your interest paid back if you repay on time.

Anchor Borrowers’ Programme (ABP)

This scheme connects you with a big company (an anchor) that agrees to buy your harvest. The anchor guarantees your loan, and you get money to buy seeds, fertiliser, and other inputs.

Think of it this way: You get the loan, the anchor gets your produce. Everyone wins.

Key benefits: You get a guaranteed buyer for your crops. No need to worry about where to sell after harvest.

Who qualifies: Smallholder farmers who are part of a farmers’ group or cooperative.

How to apply: You need to be linked to an approved anchor company through a participating bank.

Commercial Agriculture Credit Scheme (CACS)

This one is for larger operations. If you are running a commercial farm as a registered company, this might be for you.

Key benefits: Single-digit interest rate of 9% maximum, inclusive of all charges.

Loan amount: Up to ₦2 billion for private companies and up to ₦1 billion for state governments.

Repayment period: 12 months for working capital, and up to 5 years for buying assets or machinery.

Who qualifies: Limited liability companies only. Not individuals or smallholder farmers directly.

Important: This scheme requires collateral, unlike the ACGSF.

NIRSAL Microfinance Bank (NMFB) and AGSMEIS

The NIRSAL Microfinance Bank is 100% owned by the CBN and is dedicated to lending to farmers and small business owners.

The AGSMEIS scheme is for young agripreneurs and small business owners. It offers loans up to ₦5 million without collateral.

Key benefits: No collateral required. Flexible repayment plans up to 5 years. Low interest rates between 5% and 9%.

Who qualifies: Nigerian citizens aged 18 or older with a registered business (CAC registration is preferred but not always required).

How to apply: You must first complete a short business training with an accredited Enterprise Development Institute (EDI). You get a certificate, and then your application is submitted.

Step-by-Step Guide To Apply For A CBN Agricultural Loan

Now let’s get into the actual steps. Follow these carefully.

1. Get Your Documents Ready

Before you step into any bank, make sure you have these basic documents:

• Your Bank Verification Number (BVN)
• Your National Identification Number (NIN)
• A valid means of identification (like a voter’s card, driver’s license, or national ID)
• A functional bank account linked to your BVN
• Proof of farming activity (like a simple farm plan or land ownership document)

If you are part of a farmers’ cooperative or group, bring your membership documents. This helps a lot.

2. Visit A Participating Bank

You cannot apply directly to the CBN. You must go through a bank that participates in these schemes.

Participating banks include:

• Deposit money banks (like First Bank, UBA, GTBank, Access Bank, etc.)
• Microfinance banks licensed by the CBN

When you get to the bank, do not just ask for a regular loan. Specifically ask for an agricultural loan under the ACGSF or whichever scheme you are targeting.

3. Complete The Application Form

The bank will give you a prescribed application form to fill out. For the ACGSF, this form is called the ACGSF/1 form.

Fill it out carefully. The bank will then sign and stamp the form and forward it to the nearest CBN office in your state.

The CBN requires that the bank submits your application within 30 days of receiving it from you.

4. Wait For Assessment

After submission, the CBN’s Development Finance Office in your state will visit your farm to verify everything. They will take pictures and video clips. This is why you need to be honest about what you do.

The bank also runs credit checks on you through the Credit Risk Management System (CRMS).

5. Loan Disbursement

If approved, the money is sent to your bank account. For the Anchor Borrowers’ Programme, part of the loan may be given in kind as seeds, fertiliser, or other inputs.

Eligibility Requirements: What You Must Have

You cannot just walk into a bank and expect to get the loan. Here are the non-negotiable requirements:

• You must have a valid bank account with a BVN
• You must not already have an outstanding loan under any other CBN intervention scheme
• Your farming activity must be for agricultural purposes approved by the scheme (crop cultivation, animal husbandry, or activities along the agricultural value chain)
• For the ACGSF, your farm must be mapped and tagged, and you bear the cost
• For the ABP, you must be a member of a farmers’ group or cooperative

Loan Amounts And Interest Rates

Here is what you can expect:

The ACGSF also offers an Interest Drawback Programme (IDP) that gives you a 40% rebate on the interest you pay, provided you repay both principal and interest on time.

Repayment Terms You Should Know

You need to be realistic about repayment. Here is how it works:

For ACGSF: You get a grace period of three months after your repayment deadline before penalties kick in. But do not rely on that. Pay on time to qualify for the 40% interest rebate.

For CACS: Working capital loans must be repaid within 12 months. Loans for machinery and assets can go up to 5 years. A moratorium (payment holiday) can be approved on a case-by-case basis depending on your crop’s gestation period.

For AGSMEIS: Repayment plans are flexible and can go up to 5 years.

The general rule is this: match your repayment schedule to your farming cycle. If you grow cassava that takes 12 months, do not agree to repay in 6 months. Be honest with the bank about your timeline.

Common Mistakes That Get Applications Rejected

People get rejected for simple reasons. Avoid these:

Incomplete documents. 

Missing your BVN or NIN is an automatic no. Double-check everything before submitting.

Already having a CBN loan. 

You can only benefit from one CBN intervention scheme at a time. Pay off your current loan before applying for another.

Fake cooperative groups. 

For the ABP, you need a genuine farmers’ group. Do not form a fake group just to apply. The bank will find out.

Unrealistic farm plans. 

Do not inflate your numbers. Be honest about your land size, expected yield, and costs. The CBN has validated the Economics of Production (EOP) figures they use to assess you.

Watch Out For Scams

This is important. Do not fall for fraudsters.

• The CBN does not send personal messages on WhatsApp or Telegram asking for money
• Do not pay any agent who promises to guarantee your approval
• Only apply through licensed banks and official portals
• Do not give your BVN or personal details to anyone online who is not a licensed financial institution

If something feels too good to be true, it probably is. Legitimate CBN loans take time and proper documentation.

Frequently Asked Questions

Can I apply for a CBN agricultural loan without collateral?

Yes. The ACGSF and ABP are designed specifically for smallholder farmers who do not have traditional collateral. The government guarantee stands in its place.

How long does it take to get approved?

Approval typically takes 4 to 8 weeks, depending on the scheme and how complete your documents are.

I am not part of a cooperative. Can I still apply?

For the ACGSF, yes. You can apply individually through a participating bank. For the ABP, you generally need to be part of a farmers’ group or cooperative. The CBN is also working with fintechs and microfinance banks to reach individual farmers directly.

What if I have a poor credit history?

The ACGSF revamp specifically targets farmers with poor credit history and limited access to financial services. This is one of the main reasons the scheme exists. Do not let your past stop you from trying.

Can women and youth apply?

Yes. The CBN has specifically directed the board to design products tailored to women, youth, and other underserved groups.

Final Thoughts

Getting a loan from the CBN is not magic. It is a process. You need your documents ready. You need to walk into the right bank and ask the right questions. You need to be patient while they verify your farm.

The government wants you to succeed. Smallholder farmers like you produce almost all the food this country eats. The CBN knows that without you, there is no food security.

So do not let fear stop you. Visit a participating bank this week. Ask for an agricultural loan under the ACGSF. Fill out the form. Let them visit your farm. And when you get the money, use it wisely.

What is the one thing holding you back from applying for a loan today? Let me know in the comments.