The United States has reopened a major trade financing channel with Nigeria by reinstating its Export Credit Guarantee Programme (GSM-102), a move aimed at boosting agricultural trade and strengthening bilateral economic ties, according to Business Insider Africa. The scheme, managed by the U.S. Department of Agriculture, provides government-backed credit guarantees that enable Nigerian banks and importers to access financing for U.S. agricultural goods.
The revival follows the restoration of eligibility for Nigerian banks in late 2025, effectively unlocking access to U.S.-backed credit after a period of restriction. This has already allowed selected financial institutions to secure credit lines, facilitating imports of key agricultural inputs such as grains and farm equipment.
The move comes as trade between both countries continues to expand, with total bilateral trade reaching about $15 billion in 2025, a 14% increase from the previous year. Agricultural trade has been a major driver of this growth, rising sharply to roughly $764 million, an 84% jump highlighting Nigeria’s growing importance as a U.S. agricultural partner.
U.S. officials say the programme reflects a broader strategic shift from aid-based engagement to commercially driven partnerships, with a focus on improving food supply chains, reducing financing risks, and expanding private-sector opportunities. Analysts note that if effectively utilised, the scheme could ease Nigeria’s import constraints, support food security, and deepen long-term trade integration between both economies.
