AGRICULTURE CONTROL OF IMPORTATION ACT AGRICULTURAL CREDIT GUARANTEE SCHEME FUND ACT

An Act allows the Federal Government to restrict the importation of agricultural commodities and establishes a fund to guarantee loans for farmers from commercial banks. It targets farmers seeking loans, banks providing agricultural credit, and importers needing approval. This protects domestic agriculture and expands access to affordable financing.

What Is This Policy?

The Agriculture (Control of Importation) Act enables the federal government to restrict or ban the importation of agricultural commodities to protect domestic production. The Agricultural Credit Guarantee Scheme Fund Act establishes a fund that guarantees loans advanced by commercial banks to farmers, reducing lender risk to encourage agricultural lending.

Who Does It Target?

Farmers seeking agricultural loans from commercial banks Commercial and microfinance banks lending to the agricultural sector Agricultural commodity importers requiring ministerial approval

What Does It Aim to Achieve?

To protect Nigerian farmers from unfair import competition through regulated importation controls and to expand access to affordable credit for agricultural production by guaranteeing bank loans.

Key Features

Import Control Powers: The minister may restrict or prohibit importation of agricultural goods by order. Guarantee Fund: The ACGSF guarantees up to 75% of losses on qualifying agricultural loans. Eligible Borrowers: Individual farmers, cooperatives, and agribusinesses qualify for guaranteed loans. Participating Banks: All banks accredited to the CBN may access the guarantee scheme. Loan Limits: Guarantees apply to loans within prescribed maximum amounts per borrower.

Current Status

In force. The Agricultural Credit Guarantee Scheme Fund (ACGSF) is actively administered by the Central Bank of Nigeria, providing loan guarantees to banks lending to farmers. The importation control framework operates through the Federal Ministry of Agriculture and Food Security.

Apply for an agricultural loan at a participating bank Bank submits guarantee application to the CBN on behalf of the farmer For importation, apply for an import permit from the Federal Ministry of Agriculture Application method: Central Bank of Nigeria (ACGSF desk); Federal Ministry of Agriculture and Food Security

Important Terms

Borrowers must use funds for stated agricultural purposes Default on guaranteed loans affects future access to scheme Import permits specify quantities and validity periods

Official Resources

Website: www.cbn.gov.ng / www.fmard.gov.ng Policy Summary Document | Federal Republic of Nigeria

Legal Framework

Governed by two principal statutes: the Agriculture (Control of Importation) Act (Cap A12 LFN 2004) for import restrictions, and the Agricultural Credit Guarantee Scheme Fund Act (Cap A13 LFN 2004) for credit guarantees. The credit scheme operates under the Central Bank of Nigeria Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020. Customs matters align with the Customs and Excise Management Act and the WTO Agreement on Agriculture.