BOA moves against debtors, launches recovery drive for N20bn loans

The Bank of Agriculture (BOA) has announced plans to launch a nationwide loan recovery campaign aimed at reclaiming over N20 billion in non-performing loans, as it seeks to recapitalise and reposition itself as a leading development finance institution focused on rural and youth-centred agricultural development.

The Managing Director of BOA, Mr. Ayo Sotinrin, disclosed this during a public address at a youth-in-agriculture event, where he reaffirmed the bank’s commitment to empowering Nigeria’s farming population, especially the youth, with accessible, affordable capital.

“We’re not a political movement. We’re a bank.” We are about to begin ‘Operation Recover All’. Letters will be sent to all debtors appealing for full repayment. If they comply, they’ll still be eligible for new loans, but under new conditions”, Sotinrin stated.

Aside the loan recovery campaign, the bank is also planning a major recapitalisation drive, with a target of N1.5 trillion (about $1 billion), to improve liquidity and strengthen its lending capacity. The funds, he said, will enable BOA to finance vital agricultural value chains, tackle infrastructure gaps, and scale solutions like seed system innovation, storage, and logistics.

Sotinrin, himself a farmer, reiterated BOA’s central mission: rural agricultural financing. “We want to support Nigeria’s estimated 40 to 70 million farmers and ensure that agriculture is seen not just as a way of life, but as a profitable business,” he said.

He stressed the importance of youth involvement in transforming food systems, particularly in increasing yields. “We need to move from one ton per hectare to nine tons per hectare. Only then can we address food insecurity and inflation, and truly become a food basket for the continent.”

Highlighting BOA’s development finance model, Sotinrin assured that the bank’s interest rates will remain below the national prime rate, in contrast to commercial banks. However, exact figures are pending as the institution undergoes restructuring.

In line with modernisation efforts, BOA is rapidly digitizing its operations to enable faster, more efficient access to capital. “We want to become a technology-driven, agile bank that delivers the right capital at the right time,” he noted.

READ MORE FROM: NIGERIAN TRIBUNE