The Federal Government has charged the newly inaugurated Board of the Bank of Agriculture (BOA) to improve access to loans for genuine farmers and agribusinesses while ensuring that borrowed funds are recovered effectively.
Speaking during the inauguration ceremony in Abuja on Friday, the Minister of Agriculture and Food Security, Abubakar Kyari, said the government is determined to strengthen agricultural financing as part of its efforts to improve food security across the country.
Kyari explained that the ongoing recapitalisation of the Bank of Agriculture, approved by President Bola Tinubu, is expected to deliver real benefits to farmers rather than increase the bank’s administrative expenses. According to him, the government wants to see more financial support reaching smallholder farmers, women, young people, and other genuine participants in the agricultural value chain.
He stressed that the bank’s performance would be judged by how successfully it provides loans to productive agricultural businesses and how efficiently it recovers those loans.
The minister described the restructuring of the Bank of Agriculture as one of the biggest reforms ever undertaken in Nigeria’s agricultural financing sector. He noted that the exercise is being supervised by the Bureau of Public Enterprises, the Ministry of Finance Incorporated, and the Central Bank of Nigeria, which are key stakeholders in the institution.
Kyari said the Bank of Agriculture has played an important role in supporting Nigeria’s agricultural sector since it was established in 1972. Despite changes in its name over the years, he noted that the institution remains a vital source of agricultural financing.
The newly inaugurated board is chaired by Muhammad Babangida, while Ayodeji Oludare Sotinrin serves as the Managing Director and Chief Executive Officer. Other board members include Fatima Garba, Hakeem Oluwatosin Salami, Ka’amuna Ibrahim Khadi, and five non-executive directors.
Addressing the board members, Kyari urged them to ensure that loans are given only to deserving farmers and agribusinesses after proper assessment. He added that loan recovery must remain a priority because development banks can only continue supporting economic growth if borrowed funds are repaid.
He also encouraged the board to transform the bank into a modern, customer-focused institution by expanding digital services. According to him, technology should be used to speed up loan applications, approvals, disbursements, and repayments, making the bank more efficient and accessible.
The minister further directed the board to align the bank’s activities with major government agricultural programmes such as the Special Agro-Industrial Processing Zones, the IFAD-supported Value Chain Development Programme, and the World Bank-backed AGROW initiative. He explained that this would help coordinate financing across different areas of agriculture and increase productivity nationwide.
Kyari also reminded the directors to uphold high standards of corporate governance. He advised them to operate transparently, avoid conflicts of interest, and focus on providing strategic oversight while allowing the bank’s management team to handle daily operations.
Speaking on behalf of the board, Chairman Muhammad Babangida assured the government that members would provide responsible leadership to strengthen the institution and expand agricultural financing across Nigeria.
He said the board would operate with integrity, accountability, professionalism, and transparency while working closely with management, shareholders, and development partners to improve the bank’s efficiency.
Babangida added that the board’s success would not be measured only by financial performance but also by its ability to empower farmers, support agribusinesses, create employment opportunities, and improve the livelihoods of Nigerians. He pledged that the board would work diligently to justify the confidence placed in it by the Federal Government.
