Vice President Kashim Shettima has revealed the Federal Government’s intentions to revive the Bank of Agriculture (BOA) through recapitalization and restructuring efforts.
This move aims to strengthen Nigeria’s agricultural sector and secure national food self-sufficiency.
Speaking at the first National Council on Privatisation (NCP) meeting in 2024, Vice President Shettima emphasized the Bank of Agriculture’s (BOA) pivotal role in securing national food security. He highlighted the bank’s widespread presence, with branches in every senatorial district across the country, as a key asset in this critical mission.
He further alluded to the potential of the Green Imperative Project, proposing its integration with the BOA’s restructuring plans.
- According to the Vice President, “We have no business being poor. Nigeria must attain national food security. Let us leverage science and technology. There are three or four states that can feed the whole of this country,”
Committee to resuscitate the bank
Also, a committee, under the leadership of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is in the final stages of preparing a report on the recapitalization and restructuring of the Bank of Agriculture (BOA).
Significant progress has been made, with key decisions already finalized, and further announcements are anticipated soon.
What you should know
Nigeria currently grapples with a staggering food inflation rate that reached 35.41% in January, catapulting the prices of essential staple foods such as rice, maize, and other grains to unprecedented levels.
- In response to the escalating situation, the federal government has announced a strategic intervention aimed at mitigating the crisis. Authorities plan to release grains from the national reserve, a move designed to stabilize the market and drive down the soaring prices of these critical commodities.
- The recapitalisation of the BOA is hoped will provide farmers with the needed financing to upscale their businesses. Loans to farmers from conventional commercial banks have been poor in recent times. Between 2014 and 2021, the highest commercial bank loan the sector had gotten in 7 years was N1.04 trillion in 2020 which was only 5.15% of the total commercial bank loan.
