The Federal Government has tasked the Bank of Agriculture, BOA, to adopt innovative financing models to expand access to affordable credit for smallholder farmers, women, youths and agribusinesses.
The government said improved agricultural financing was necessary to increase food production, create jobs, reduce poverty and strengthen the resilience of agricultural value chains.
The statement was signed recently by Ezeaja Ikemefuna, Head, Department of Information, Federal Ministry of Agriculture and Food Security.
Speaking at a retreat for the newly inaugurated Governing Board of BOA in Abuja, the Minister of Agriculture and Food Security, Sen. Abubakar Kyari, urged the board to explore blended finance, guarantees and credit enhancement schemes to de-risk agricultural lending.
According to him, “The Bank has a critical responsibility to provide appropriate, affordable and accessible financial services to those who are often underserved by conventional financial institutions.”
Kyari said financing must be timely and responsive to the seasonal nature of agriculture to ensure that credit reaches rural farmers, women in processing, youths in agribusiness and cooperatives.
He tasked the board with developing partnerships with state governments, development partners, financial institutions, private investors and cooperatives to mobilise additional resources and expand the bank’s reach.
The minister also directed the board to develop a measurable and time-bound strategic roadmap for repositioning BOA in line with the Federal Government’s agricultural priorities.
He stressed that effective governance, transparency and accountability must guide the board’s stewardship, with zero tolerance for practices capable of undermining the bank’s credibility.
“Nigeria has enormous agricultural potential. What is required is a financial institution that is sufficiently strong, innovative, accountable and responsive to unlock that potential at scale,” he emphasized.
Kyari expressed confidence that the board, working with the bank’s management, the ministry, state governments and other stakeholders, could reposition BOA as a more effective institution.
The Minister of State for Agriculture and Food Security, Sen. Dr. Aliyu Sabi Abdullahi, urged the board to reposition agriculture from subsistence production to a commercially viable, technology-driven and investment-oriented sector.
He said the bank’s performance would affect farmers’ ability to produce, businesses’ capacity to invest and create jobs, and the affordability and availability of food.
Abdullahi urged the board to demonstrate bold leadership, disciplined execution and integrity in repositioning the bank.
The Permanent Secretary, Dr. Marcus Olaniyi Ogunbiyi, said strong corporate governance and compliance with relevant laws and financial management requirements were critical to BOA’s effectiveness.
He said, ‘’ It is essential that the Bank continues to strengthen its corporate governance mechanisms and ensure strict compliance with all relevant laws, regulations, financial management requirements and established best practices’’.
Ogunbiyi added that robust internal controls, prudent financial management, risk management and transparency in procurement and lending were necessary to sustain the bank’s credibility.
The Chairman of the BOA Board, Alhaji Mohammed Babangida, said the board would provide strategic oversight, strengthen corporate governance and hold management accountable for performance.
He pledged that ‘’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’’.
The retreat was attended by BOA board members, development partners and officials of the Ministry of Agriculture and Food Security.