U.S. Revives GSM-102 Credit Scheme To Accelerate Agricultural Trade With Nigeria
By Bukar BOLORI
The United States has stepped up efforts to deepen agricultural trade ties with Nigeria by revitalizing a key financing mechanism designed to ease access to imports and strengthen food supply chains.
At the center of this push is the Export Credit Guarantee Program (GSM-102), administered by the U.S. Department of Agriculture.
The program provides government-backed credit guarantees that reduce the financial risks faced by banks and importers, making it easier for Nigerian businesses to source essential agricultural inputs from the United States.
Officials say the move reflects a broader strategy to shift economic engagement toward mutually beneficial trade.
Speaking in Lagos, U.S. Consul General Rick Swart emphasized a transition “from aid to trade,” positioning Nigeria as a critical commercial partner in Africa and highlighting opportunities for entrepreneurs and investors on both sides.Trade figures underscore the growing relationship.
Bilateral trade between United States and Nigeria reached nearly $15 billion in 2025, marking a 14 percent increase from the previous year. Agricultural trade has been a major driver, rising sharply to $764 million—an 84 percent jump that reflects expanding demand and stronger market linkages.
To boost awareness and participation in GSM-102, the Foreign Agricultural Service of the U.S. Consulate General convened a two-day forum in Lagos.
The event brought together stakeholders including the U.S. International Development Finance Corporation, the Nigerian-American Chamber of Commerce, U.S. exporters, Nigerian banks, and agricultural importers.
Discussions focused on how the credit guarantee scheme can unlock financing, improve food security, and create jobs across the agricultural value chain.
Participants also engaged in business-to-business meetings aimed at converting opportunities into tangible trade deals.
According to Demeteris Hale, the programme’s strength lies in its ability to build market confidence by lowering transaction risks, thereby enabling lenders and exporters to expand into new markets.
The renewed momentum follows a key development in late 2025, when Nigerian banks regained eligibility to participate in GSM-102. Since then, selected financial institutions have received credit limits, reopening access to U.S.-backed trade financing and helping to accelerate agricultural commerce between the two countries.
With these developments, both nations are positioning agricultural trade as a cornerstone of their economic partnership—one expected to drive investment, enhance food systems, and create new commercial opportunities in the years ahead.
