The Federal Government has called on the Bank of Agriculture (BOA) to adopt innovative financing models and blended finance mechanisms to reduce lending risks and improve access to credit across Nigeria’s agricultural sector.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, made the call on Tuesday at a retreat organised for the newly inaugurated governing board of BOA in Abuja.
Kyari said the constitution of the new board represented a significant step towards strengthening the institution and repositioning it to better fulfil its mandate.
He encouraged the bank to deploy guarantees, credit enhancement schemes and other suitable financial instruments to widen access to agricultural financing.
“The ultimate objective should be to build a stronger and more sustainable agricultural financing ecosystem capable of supporting farmers and agribusinesses throughout the agricultural value chain.
“We must ensure that affordable and accessible financial services reach smallholder farmers in rural communities, women engaged in agricultural production and processing and young Nigerians seeking opportunities in agribusiness.
“They should also reach cooperatives seeking to expand their operations and agricultural enterprises requiring capital for production, processing, storage and marketing,” he said.
The minister acknowledged that Nigeria’s agricultural financing challenges were extensive and required coordinated efforts beyond the capacity of BOA alone.
He therefore urged the board to deepen its partnerships with the Federal Ministry of Agriculture and Food Security, state governments and development organisations.
“Strategic partnerships will be essential for mobilising additional resources, expanding the bank’s reach and enhancing programme delivery,” he said.
Kyari said the Federal Government’s priorities under the Renewed Hope Agenda included increasing food production, raising agricultural productivity, strengthening value chains and reducing post-harvest losses.
He added that expanding agro-processing remained another key component of the government’s agricultural transformation agenda.
“The Bank of Agriculture must be positioned as a key financial instrument for translating these policy priorities into tangible outcomes,” he said.
In a goodwill message, the Minister of State for Agriculture, Sen. Aliyu Abdullahi, described BOA as a key institution in the government’s efforts to transform Nigeria’s agricultural sector.
“As the nation’s foremost agricultural development finance institution, the bank has a critical role to play in providing accessible and sustainable financing,” he said.
Abdullahi urged the bank to align its financing programmes more closely with the practical challenges confronting farmers and agribusiness operators.
Earlier, the Permanent Secretary of the Federal Ministry of Agriculture and Food Security, Dr Marcus Ogunbiyi, said the retreat was taking place at a critical stage in the ongoing transformation of the agricultural sector.
He said the Renewed Hope Agenda was repositioning agriculture beyond food production to make it a stronger driver of food security, economic diversification, employment and industrial development.
Chairman of the BOA Board, Muhammad Babangida, said the institution occupied an important position in Nigeria’s economic development, noting that its performance directly affected farmers, agribusinesses, rural communities, food production, employment and national food security.
“Our responsibility as a board is, therefore, significant.
“We must provide sound strategic oversight, ensure strong corporate governance, hold management accountable for performance and help position the bank to deliver effectively on its mandate,” he said.
Babangida assured that the board would work towards building a stronger, more efficient and impactful BOA capable of providing greater support to farmers and agribusinesses while contributing meaningfully to Nigeria’s economic growth.
