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May 27, 2024

Privatisation: FG Mulls BOA, NIRSAL Merger

…to inject fresh capital

The National Council on Privatisation, NCP, has revealed plans to merge the Bank of Agriculture and the Central Bank of Nigeria’s NIRSAL Microfinance Ltd and proposed a plan to inject fresh capital to revitalise the institutions after the merger.

The decisions, which were among the recommendations of NCP’s Committee on BOA, was disclosed at the meeting of the Council held at the Presidential Villa, Abuja, yesterday. 

Vice President Kashim Shettima who chaired the meeting reiterated President Bola Tinubu’s commitment to repositioning and reforming BOA to drive the administration’s food security agenda.

” Let’s get very sound professionals with integrity to manage the bank. If we use it well, it’s going to be a tool for the transformation of our economy because agriculture is the key.,” he said

Earlier, while presenting the committee’s report, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the council’s decision was informed by the challenges identified and the need for urgent resolution of the issues confronting the bank.

Mr Edun, who is the NCP Vice-Chairman, outlined the major recommendations, including “the immediate reconstitution of the Board of Directors of the Bank to enhance corporate governance.

He also highlighted the proposal to” cede National Agricultural Land Development Authority (NALDA) land titles to BOA so that it would reflect in its Balance Sheet, adding that “this will increase the capital adequacy for the purpose of raising funds from institutional investors”. 

The minister acknowledged the need for financial reinforcement of the bank as well as adequate capital injection by its shareholders as a crucial step forward.

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