FG to recapitalize the Bank of Agriculture to increase food output

The Federal Government’s plans to recapitalize and restructure the Bank of Agriculture (BOA) have been made public by Vice President Kashim Shettima.

Nigeria’s agricultural industry is to be strengthened, and national food self-sufficiency is to be ensured.

Speaking at the inaugural National Council on Privatization (NCP) gathering in 2024, Vice President Shettima stressed the critical role that the Bank of Agriculture (BOA) plays in guaranteeing food security for the country. He emphasized the bank’s extensive reach in this vital task, pointing out that it has branches in every senatorial district in the nation. 

By suggesting that the Green Imperative Project be integrated with the BOA’s reorganization plans, he further hinted at the project’s potential.

The Vice President declared, “We have no business being impoverished. Nigeria has to achieve food security on a national level. Let’s make use of technology and science. Three or four states have enough food to feed the entire nation.”

A report on the recapitalization and reorganization of the Bank of Agriculture (BOA) is also nearing completion, with Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, leading the committee.

Important choices have already been made, indicating significant progress, and more announcements should come soon.

The food inflation rate in Nigeria is so high that it reached 35.41% in January, driving up the cost of staple goods like rice, maize, and other grains to previously unheard-of levels.

The federal government has declared a strategic intervention aimed at crisis mitigation in response to the worsening circumstances. In an effort to calm the market and lower the skyrocketing prices of these essential goods, authorities intend to release grains from the national reserve.

It is hoped that the BOA’s recapitalization will give farmers the money they need to expand their enterprises. Farmers have recently received subpar loans from traditional commercial banks. 

The largest commercial bank credit the industry received in the seven years between 2014 and 2021 was N1.04 trillion in 2020, or about 5.15% of all commercial bank loans.