As part of efforts to strengthen Nigeria’s agricultural sector and enhance food security, President Bola Ahmed Tinubu has directed the Bank of Agriculture (BOA) to settle outstanding payments owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP).
This follows the release of N30 billion from the African Development Bank (AfDB).
According to a statement from the BOA, the N30 billion is the second tranche of funding released by AfDB for the NAGS-AP initiative and will cover arrears from the 2024 dry and wet season programmes. BOA’s Managing Director/Chief Executive, Mr. Ayo Sotinrin, noted that this move marks a pivotal moment for Nigeria’s agricultural sector.
He emphasized the importance of removing bureaucratic hurdles to ensure that payments are quickly processed for agro-dealers and suppliers, ultimately supporting farmers and the country’s food supply chain.
In line with the directive, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, instructed that these payments be prioritized.
The NAGS-AP Secretariat and BOA confirmed that the process began on September 18, with the official handover of beneficiary data.
Mr. Sotinrin further expressed that the N30 billion is not only a financial commitment but also a critical step toward enabling sustainable agricultural practices.
By collaborating closely with the NAGS-AP team, the BOA aims to provide timely support to the agricultural value chain and encourage the transition from subsistence farming to more profitable agribusiness ventures.
To ensure that payments are processed without delays, BOA outlined conditions for agro-dealers and suppliers eligible for the funds.
These include the requirement to open a BOA account, a process which is free of charge and can be completed online. The bank also assured that payments would be processed swiftly through its electronic wallet system, with funds made available within 24 hours for verified beneficiaries.
The BOA further emphasized that only pre-registered beneficiaries who have received at least one prior payment under NAGS-AP and have completed the account activation process will qualify for the funds.
The bank urged beneficiaries to fulfill all necessary requirements promptly, warning that failure to do so could result in delays in processing payments.
Mr. Sotinrin concluded by expressing the bank’s gratitude to President Tinubu and the relevant ministers for their continued support.
He described the initiative as essential for Nigeria’s food security and long-term agricultural transformation.
