US Expands Credit Support for Nigeria Agriculture Trade Under GSM-102 Programme

Mintesinot Niggusie

The United States Department of Agriculture has expanded support for agricultural trade with Nigeria through its Export Credit Guarantee Program, known as GSM-102, as Washington shifts toward trade-led engagement with African partners.

The programme provides US government-backed credit guarantees to facilitate financing for Nigerian banks and importers purchasing agricultural inputs from the United States, reducing transaction risk and supporting supply chain stability.

The move comes amid strengthening economic ties between the two countries. Bilateral trade in goods and services reached nearly 15 billion US dollars in 2025, a 14 percent increase from the previous year, while agricultural trade rose sharply to 764 million US dollars from 415 million US dollars in 2024.

US officials said the programme is intended to deepen commercial links, improve food security and expand private sector opportunities in both markets.

To boost utilisation of the scheme, the Foreign Agricultural Service hosted a two-day forum in Lagos, bringing together representatives from US exporters, Nigerian banks, agribusinesses and development finance institutions for technical discussions and business engagement.

Speaking at the event, Rick Swart said the United States is shifting its approach toward Nigeria from aid to trade, positioning the country as a key commercial partner in Africa.

Participants discussed how the GSM-102 facility can help Nigerian firms access US markets, secure financing for imports and expand operations, while also supporting job creation and trade flows on both sides.

According to Demeteris Hale, the programme strengthens market confidence by lowering financial risk for lenders and exporters, enabling transactions that might otherwise face financing constraints.

The expansion follows the reinstatement of Nigerian banks’ eligibility for the programme in late 2025. Since then, selected institutions have received credit limits, allowing renewed access to US-backed trade finance.