USA
Iyunade Grace
The United States has revitalized its Export Credit Guarantee Program, GSM-102, to deepen agricultural trade with Nigeria and give Nigerian banks and importers easier access to financing for U.S. farm products. The program is run by the U.S. Department of Agriculture and provides government-backed credit guarantees that lower the risk for lenders when Nigerian buyers purchase essential agricultural inputs from the United States. U.S. officials say GSM-102 is a “strategic pivot toward trade-led engagement” meant to strengthen food supply chains, expand commercial ties, and create opportunities for agribusinesses on both sides.
Access to GSM-102 reopened for Nigerian banks in late 2025 after a period of restriction, and Washington is now pushing to scale up utilization. To do that, the Foreign Agricultural Service of the U.S. Consulate General in Lagos hosted a two-day forum that brought together USDA officials, the U.S. International Development Finance Corporation, the Nigerian-American Chamber of Commerce, U.S. exporters, Nigerian banks, and agricultural importers. The event focused on how the credit guarantees work, ways to reduce transaction risk, and how to convert policy into actual deals that move grain, feed, fertilizer, and equipment into Nigeria.
The backdrop is a sharp rise in U.S.-Nigeria commerce. Two-way trade in goods and services reached nearly $15 billion in 2025, up 14% from 2024. Agricultural trade was a standout performer, climbing 84% to $764 million from $415 million the year before. That growth highlights Nigeria’s importance as one of America’s key agricultural partners in Africa and helps explain why the U.S. is prioritizing financing tools that can keep the momentum going.
For Nigerian importers, GSM-102 guarantees repayment to U.S. exporters or their banks if the foreign buyer defaults. That guarantee reduces lender hesitation and makes it possible for Nigerian banks to extend credit for shipments of wheat, soybean meal, dairy ingredients, genetics, and other inputs critical to food and feed production. USDA officials at the Lagos roundtable said they are also working to bring more U.S. banks willing to take Africa risk into the program and to promote zero-tenor Sight Letters of Credit to help Nigerian buyers mitigate exchange-rate volatility.
U.S. Consul General Rick Swart framed the move as part of a broader shift in how Washington engages Nigeria economically. “Under the Trump administration, we are making a clear shift, from aid to trade… engaging Nigeria as an outstanding and unique commercial partner,” he said at the Lagos event. The emphasis is on building an environment where entrepreneurs, innovators, and investors can drive U.S.-Nigeria commerce rather than relying on traditional aid channels. GSM-102 fits that model by using government guarantees to unlock private financing.
Nigerian banks and agribusinesses that attended the forum described the program as useful and said they are prepared to pass on the benefits to end-users. The Nigerian-American Chamber of Commerce noted that reducing financing bottlenecks would help importers source quality inputs at better terms, which can lower production costs for poultry, feed mills, flour mills, and food processors. In turn, that supports food security and price stability for consumers while giving U.S. exporters a more predictable market.
The U.S. Mission says the goal isn’t just bigger trade numbers but more resilient supply chains. By guaranteeing credit, GSM-102 helps Nigerian firms plan procurement with less uncertainty, smooths seasonal gaps, and encourages investment in processing capacity that depends on reliable raw-material flow. It also complements other USDA trade programs and DFC financing tools that support infrastructure and agribusiness expansion.
With bilateral trade already near $15 billion and agricultural shipments posting double-digit growth, U.S. officials see Nigeria as a priority market for expanding export finance. The revitalized GSM-102 program is expected to translate policy into transactions, strengthen commercial ties with Nigerian agribusinesses, and support private sector growth. As more Nigerian banks get comfortable with the structure and more U.S. suppliers participate, the program could become a regular feature of Nigeria’s agricultural import financing.
