The restructuring of the Bank of Agriculture (BOA) in Nigeria to function effectively and meet the needs of the farmers in the country has entered its final stage.
key stakeholders have met to put all necessary modalities in place and achieve the set target in 90 days.
For over two years now the Nigerian Ministry of Agriculture and Rural Development has been in the process of restructuring the Bank of Agriculture in the country for the benefit of farmers.
The bank in its current structure is under performing as it’s faced with challenges of inadequate funding, poor risk management strategies, among others.
The meeting which aimed at improving the bank held in Abuja, Nigeria’s capital. It had in attendance representatives from the Ministry of Agriculture, Bank of Agriculture and the Bureau of Public Enterprise.
The bank’s restructuring is geared towards recapitilisation, commercialization and privatization of the Bank with the farmer having the highest share thereby making it the farmers Bank.
The minister of agriculture and rural development in Nigeria Mr. Audu Ogbeh said when the recapitalization and restructuring of the BOA is finalized, the Bank will become a huge financial institution.
Mr. Ogbeh disclosed that the government is recapitalizing the bank with 250 billion Naira.
He urged farmers to key into the idea as it is a chance for them to benefit immensely from the bank as the government will support it and ensure it does not fail.
The Minister added that in three and a half years that the present government intensified and promoted local production, Nigeria has saved 21billion Dollars on food importation and agriculture exports have gone up with about 500%.
Mr. Ogbeh added that agriculture needs more cottage industries so that the youth can get involved in agriculture in their localities.
When the restructuring is done, the Bank of agriculture will no longer depend on government’s intervention. It is envisaged that the Central Bank of Nigeria will have 20% share, Ministry of Finance will own 20%, the private sector will own 20% while the farmer will be the major share holder with 40% equity.
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