The Federal Government has announced its commitment to finalising the long-awaited recapitalisation of the Bank of Agriculture (BoA) by the end of the first quarter of 2025. The initiative is aimed at addressing the persistent funding challenges faced by smallholder farmers and boosting commercial agriculture in Nigeria.
Abubakar Kyari, Minister of Agriculture and Food Security, made this disclosure while outlining the government’s efforts to combat rising food inflation, currently at approximately 34%. Speaking on the matter, Kyari emphasised the strategic importance of the recapitalisation process, describing it as a critical step toward revitalising the agricultural sector.
“The recapitalisation of the Bank of Agriculture will be concluded before the end of the first quarter of 2025,” the minister stated. “This will enable the bank to provide much-needed financial support to farmers, which has been inadequate in recent years.”
The BoA, which operates a network of 109 branches nationwide, has long been identified as a key player in agricultural financing. However, its potential has been undermined by limited resources. Between 2014 and 2021, loans extended to the agricultural sector by commercial banks reached their highest point in 2020 at N1.04 trillion, accounting for only 5.15% of total commercial loans over the seven-year period.
Efforts to revitalise the BoA gained momentum last year during a meeting of the National Council of Privatisation (NCP), chaired by Vice President Kashim Shettima. A committee, led by Wale Edu, Minister of Finance and Coordinating Minister of the Economy, was tasked with developing a framework for the bank’s resuscitation. The initiative is part of the government’s broader strategy to tackle food insecurity and ensure sustainable agricultural development.
Kyari expressed optimism that the recapitalisation would significantly improve farmers’ access to financing, enabling them to expand their operations and enhance productivity. “It is hoped that this move will help smallholder farmers access the necessary funding to scale their businesses, as support from commercial banks has remained insufficient,” he added.
Despite the challenges, Kyari highlighted the achievements of the 2024 farming season, noting a record-breaking harvest that surpassed the output of previous years. He attributed this success to the government’s targeted interventions in the agricultural sector.
The completion of the BoA recapitalisation is expected to strengthen the agricultural value chain, reduce food inflation, and address food insecurity in Nigeria. Stakeholders and farmers alike have welcomed the government’s renewed commitment to supporting agriculture as a cornerstone of the economy.
