U.S. reopens $15bn Nigeria trade channel with revived farm credit scheme

The United States has renewed and expanded a key export financing scheme to strengthen agricultural trade with Nigeria, as bilateral commerce between the two countries continues to grow.

• The United States has reinstated a key export credit programme to boost agricultural trade with Nigeria.
• Bilateral trade between the two countries reached $15 billion in 2025, with agriculture driving strong growth.
• Nigerian banks have regained access to U.S.-backed financing, easing imports of critical farm inputs.
• Officials say the shift signals a broader move from aid-based engagement to commercially driven partnerships.

The U.S. Department of Agriculture’s Export Credit Guarantee Programme, known as GSM-102, offers government-backed guarantees that enable Nigerian banks and importers to access financing for purchasing American agricultural commodities. The move follows the restoration of eligibility for Nigerian banks in late 2025, reopening access to U.S.-backed credit after a period of restriction.

The development comes amid rising trade volumes between the two countries. Two-way trade in goods and services reached approximately $15 billion in 2025, a 14 percent increase from the previous year. Agricultural trade accounted for a significant share of that growth, climbing to $764 million from $415 million in 2024, an 84 per cent rise.

U.S. officials say the programme is designed to reduce risk for lenders and exporters while facilitating cross-border transactions. Speaking at a trade event in Lagos, U.S. Consul General Rick Swart described Nigeria as a critical agricultural partner, noting a shift in Washington’s approach to economic engagement.

“We are making a clear shift, from aid to trade. That means we are looking for real-world solutions that foster the kind of business environment that enables entrepreneurs, innovators, and investors to build the future of U.S.-Nigeria commerce,” Swart said.

The two-day event, organised by the Foreign Agricultural Service, brought together U.S. and Nigerian stakeholders, including government agencies, financial institutions, exporters, and agribusiness firms. Discussions focused on improving access to financing, strengthening food supply chains, and converting market opportunities into transactions through business-to-business engagements.

Demeteris “Dee” Hale, a senior analyst at the U.S. Department of Agriculture, said the GSM-102 programme plays a central role in building 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,” Hale said.

Credit limits have already been extended to selected Nigerian banks under the programme, signalling a gradual resumption of trade financing flows.

Analysts say the initiative could help stabilise supply chains and support Nigeria’s demand for key agricultural inputs, while creating export opportunities for U.S. producers.

However, the long-term impact will depend on how effectively Nigerian financial institutions and importers utilise the scheme, as well as broader economic conditions affecting trade and currency stability.