The United States Government has intensified efforts to expand agricultural trade with Nigeria through the reactivation and scale-up of its Export Credit Guarantee Programme, GSM-102, a financing mechanism designed to unlock billions of dollars in cross-border transactions and strengthen food supply chains.
Speaking at a high-level forum in Lagos, U.S. Consul General Rick Swart said the initiative reflects a deliberate shift in Washington’s engagement with Nigeria, prioritising trade-driven partnerships over aid.
He noted that the approach is aimed at fostering a stronger business environment where investors, exporters, and entrepreneurs can drive sustainable economic growth between both countries.
The programme, powered by the U.S. Department of Agriculture, provides government-backed guarantees that reduce risks for lenders, enabling Nigerian banks and importers to access credit facilities for the purchase of critical agricultural commodities and inputs from the United States.
Available data underscores the growing momentum in bilateral trade, as total exchange between Nigeria and the U.S. rose to nearly $15 billion in 2025, marking a 14 per cent increase from the previous year. Agricultural trade recorded a significant surge, climbing by 84 per cent to $764 million, up from $415 million in 2024, positioning Nigeria as a key partner in America’s global trade outlook.
To drive implementation, the U.S. Consulate in Lagos convened stakeholders including officials from the U.S. Department of Agriculture, the U.S. International Development Finance Corporation, the Nigerian-American Chamber of Commerce, alongside exporters, financial institutions, and agricultural importers. The forum focused on bridging financing gaps, enhancing awareness, and converting policy frameworks into tangible commercial deals.
Participants explored how the GSM-102 facility can catalyse growth by easing access to credit, strengthening market confidence, and expanding trade opportunities. Business-to-business engagements were also held, allowing Nigerian firms to negotiate directly with U.S. exporters and establish new supply partnerships.
Demeteris “Dee” Hale, a Senior Analyst at the USDA, highlighted the programme’s role in de-risking transactions in emerging markets, noting that it enables lenders and exporters to confidently expand into new territories while supporting increased agricultural trade flows.
The initiative gained renewed traction following a key development in late 2025, when Nigerian banks regained eligibility to participate in the programme after a period of exclusion. Selected financial institutions have since secured credit limits, restoring access to U.S.-backed financing and accelerating agricultural imports.
With global food systems facing mounting pressure and financing constraints tightening, the revitalised GSM-102 programme is expected to play a pivotal role in reshaping Nigeria’s agricultural import landscape while reinforcing a more commercially anchored partnership between both nations.
