The Federal Government of Nigeria has announced that the recapitalisation of the Bank of Agriculture (BOA) will be finalised by the end of the first quarter of 2025.
Minister of Agriculture and Food Security, Abubakar Kyari, made this disclosure on Tuesday while briefing the State House Correspondents in Abuja.
He stated: “The recapitalisation of the bank will be concluded before the end of the first quarter of 2025.”
He explained that the initiative aims to enhance funding for smallholder farming, addressing long-standing issues of inadequate financial support in commercial agriculture.
According to him, between 2014 and 2021, agricultural loans from commercial banks peaked at just N1.04 trillion in 2020, representing a mere 5.15% of total loans during that period.
Kyari stressed that the recapitalisation is crucial for combating food inflation, which currently stands at approximately 34%.
The Bank of Agriculture (BOA), with its extensive network of 109 branches, is poised to play a crucial role in enhancing agricultural financing in Nigeria. Finance
Minister Wale Edun is spearheading a committee focused on restructuring the bank and developing funding strategies to ensure its effectiveness in supporting the agricultural sector.
This initiative aligns with the government’s broader efforts to boost domestic agricultural production and reduce reliance on food imports, addressing critical challenges faced by farmers across the nation.
The committee’s work aims to revitalise the BOA’s capacity to serve Nigeria’s agricultural needs effectively.
Kyari further noted that the bank, with about 109 branches, has the potential to aid funding for the agricultural sector.
The National Council of Privatisation (NCP), chaired by Vice President Kashim Shettima, had in 2024 inaugurated a committee headed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, to work out modalities for the resuscitation of the bank.
Kyari further explained that the move is part of the government’s response to escalating food insecurity, as part of strategic interventions aimed at mitigating the crisis.
He announced that with the recapitalisation, “It is hoped that farmers will get the needed financing to upscale their businesses, as loans to farmers from conventional commercial banks have been poor in recent times.”
Kyari revealed the timeline for the merger, saying, “Something that I also missed out is the reorganisation and recapitalisation of the Bank of Agriculture. It’s in the process, and very soon, within the first quarter of this year, you will see a report outlining the reorganisation and the recapitalisation of the Bank of Agriculture.
“Bank of Agriculture has branches in all 109 senatorial districts and can reach out quickly to those farmers. What we are saying is that you need to support smallholder farmers who lack capital.
“So we have written to some banks. We are also reorganising the Bank of Agriculture to support what the government is doing in the sense of public financing in the budgets and what have you.”
According to Kyari, these initiatives are supported by commercial banks, development partners, and public finance channels, all of which work together to improve agricultural initiatives nationwide.