The Federal Government has announced plans to finalise the recapitalisation of the Bank of Agriculture (BoA) before the end of the first quarter of 2025, as part of efforts to enhance funding for smallholder farmers and tackle food inflation.
Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed this to State House correspondents on Tuesday during a ministerial briefing at the presidential Villa, Abuja .
The long-delayed recapitalisation is seen as a critical step to addressing the chronic underfunding of the agriculture sector.
Data shows that between 2014 and 2021, the highest commercial bank loans to the sector amounted to ₦1.04 trillion in 2020, representing just 5.15% of total commercial bank loans over seven years.
Speaking on the initiative, Kyari said: “The recapitalisation of the bank will be concluded before the end of the first quarter of 2025.”
He highlighted the bank’s extensive network of 109 branches as a vital tool to support agricultural financing.
In 2024, Vice President Kashim Shettima, who chairs the National Council of Privatisation (NCP), inaugurated a committee led by Finance Minister Wale Edu to develop a roadmap for the bank’s revival.
This move aligns with broader government strategies to address food insecurity and provide critical support to farmers.
Kyari added: “With the recapitalisation, it is hoped that farmers will get the needed financing to upscale their businesses, as loans to farmers from conventional commercial banks have been poor in recent times.”
He also reported encouraging developments in agricultural output, noting that the country’s 2024 farming season delivered harvests that “far exceeded what we had in previous years.”
The initiative comes as the government awaits $4.5 billion from the Green Imperative Programme, designed to support mechanisation and other agricultural advancements
Kyari also confirmed the arrival of 200 tractors in Nigeria as part of ongoing efforts to modernise farming practices.