The United States has intensified efforts to strengthen agricultural trade with Nigeria through the reactivation of a key financing initiative aimed at improving access to imports and reinforcing food supply chains.
Central to the initiative is the Export Credit Guarantee Programme (GSM-102), administered by the U.S. Department of Agriculture. The scheme offers government-backed credit guarantees that mitigate financial risks for banks and importers, enabling Nigerian businesses to more easily procure critical agricultural inputs from the U.S.
Speaking in Lagos, U.S. Consul General Rick Swart said the move aligns with Washington’s broader strategy of shifting engagement “from aid to trade,” describing Nigeria as a key commercial partner in Africa with expanding opportunities for investors and entrepreneurs.
Recent trade data highlights the growing economic ties between both countries. Bilateral trade rose to nearly $15 billion in 2025, representing a 14 per cent increase year-on-year. Agricultural trade has been a major contributor, climbing to $764 million—an 84 per cent surge driven by rising demand and stronger market integration.
To deepen participation in the GSM-102 programme, the Foreign Agricultural Service of the U.S. Consulate General hosted a two-day stakeholders’ forum in Lagos. The event convened key players, including the U.S. International Development Finance Corporation, the Nigerian-American Chamber of Commerce, U.S. exporters, Nigerian financial institutions, and agricultural importers.
Deliberations focused on leveraging the credit guarantee mechanism to unlock financing, enhance food security, and stimulate job creation across the agricultural value chain. The forum also featured business-to-business engagements aimed at translating prospects into concrete trade transactions.
According to Demeteris Hale, the programme’s value lies in its capacity to build market confidence by reducing transaction risks, thereby enabling lenders and exporters to expand into new markets.
Momentum for the initiative gathered pace following developments in late 2025, when Nigerian banks regained eligibility to participate in the GSM-102 scheme. Selected institutions have since been assigned credit limits, restoring access to U.S.-backed trade financing and accelerating bilateral agricultural commerce.
With these developments, both countries are positioning agriculture as a cornerstone of their economic partnership—one expected to drive investment, strengthen food systems, and unlock new commercial opportunities in the coming years.
