US Woos Nigerian Agro-Importers with Restored GSM-102 Credit Guarantee

News in brief:

-US reopens GSM-102 credit scheme to Nigerian banks to support agro-import financing.

-Nigeria–US agricultural trade rises sharply, signalling a shift from aid to trade.

The United States has restored Nigerian banks’ access to the US Department of Agriculture’s GSM-102 credit guarantee programme, a move aimed at strengthening financing for agricultural imports and expanding bilateral trade.

Officials confirmed that Nigerian financial institutions regained access to the GSM-102 programme in late 2025, enabling them to support importers seeking agricultural inputs from the United States.

Demeteris Hale, Senior Analyst for Africa at the US Department of Agriculture, said the scheme plays a critical role in reducing transaction risks and improving market confidence.

“At its core, GSM-102 strengthens market confidence by reducing risk, enabling lenders and exporters to move forward with transactions and expand into new opportunities,” he said.

Trade Volumes Record Significant Growth

Agricultural trade between Nigeria and the United States rose to $764 million in 2025, up from $415 million in the previous year, reflecting increased activity in the sector.

Overall bilateral trade in goods and services approached $15 billion, with agricultural commodities emerging as a key driver. Data also showed that Nigeria’s imports from the United States climbed to $6.7 billion in 2025 from $4.2 billion recorded a year earlier.

US Consul General Rick Swart said the renewed engagement signals a strategic shift in approach, positioning Nigeria as a commercial partner rather than a recipient of aid. He noted that the focus is now on building sustainable trade relationships, particularly in agricultural exports.

Officials disclosed that credit limits have already been extended to selected Nigerian banks since late 2025, indicating early adoption of the programme.

The development is expected to ease access to financing for agro-importers, enhance supply chains and support the growth of Nigeria’s agricultural sector.