The Agricultural sector is seen as an environment that contributes to the Nigerian foreign exchange, regrettable it seems to have been substituted for the black gold. It is for food security and sustainable development goals, Nigeria established the Bank of Agriculture (BOA). The birth of this institution gave rise to the Agricultural Credit Guarantee Scheme Fund (ACGSF) to revitalise the economy through loanable income. Despite this intervention, it appears that the value chain and the reduction of the rural-urban migration have not been achieved. The study therefore critically examined the causal relationship between financial deepening and agricultural credit guarantee scheme funds in Nigeria. The study adopted a broad money supply (BMS,) and credit to the private sector (CPS) as measures of financial deepening. Moreover, the data was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and prorated, while (ACGSF) was sourced from BOA database. All data were monthly from January 2017 to December 2018 and was analysis using the Ordinary Least Squares (OLS). The findings reported that ACGSF had a negative causal relationship with BMS, but insignificant, and uncovered a positive and significant causal relationship with (CPS). The outcomes lead to suspected high inflation as possible causes to the behaviour of money supply. The study concluded that BMS constitutes a significant variable of study that affects negatively on (ACGSF) in Nigeria that demands the monetary policy attention. Finally, the study recommends the (CBN) to effects a downward review of the inflation rate and strengthens the cash policy.

Keywords : Bank of Agriculture, Credit to Private Sector, Broad Money Supply, Agricultural Credit Guarantee Scheme Fund, OLS,& Nigeria