In a landmark decision aimed at revitalising Nigeria’s agricultural financing landscape, the Federal Government has announced plans to privatize the Bank of Agriculture (BOA).
This move, which seeks to attract private sector investment, expand access to credit, and foster greater efficiency, represents a significant shift in the management and ownership structure of the institution.
The Bank of Agriculture, established to provide financial support to farmers and agribusinesses, has long been plagued by inefficiencies, limited funding, and administrative bottlenecks. The proposed privatisation aims to address these challenges and reposition the bank as a more dynamic and inclusive institution.
Under the current ownership structure, the Ministry of Finance Incorporated (MOFI) holds 60 percent of BOA’s shares, while the Central Bank of Nigeria (CBN) owns the remaining 40 percent. The privatization plan will drastically alter this arrangement, with MOFI and the CBN each retaining a reduced 20 percent stake. An additional 20 percent will be allocated to private investors, while a significant 40 percent will be made available to farmers, farmers’ cooperatives, and ordinary Nigerians through the capital market.
The Federal Government’s decision to include farmers and cooperatives in the ownership structure is particularly noteworthy, as it underscores its commitment to democratising access to credit and empowering stakeholders directly involved in agriculture.
By encouraging farmers to join cooperative groups, the government aims to streamline the disbursement of loans and grants, reduce credit risks, and foster accountability.
This restructuring is expected to open up new opportunities for private sector participation in the agricultural sector. Private investors, who are known for bringing innovation, expertise, and capital, are anticipated to drive the transformation of BOA into a more robust financial institution capable of supporting Nigeria’s agricultural growth and food security objectives.
Speaking on the development, a senior government official described the move as “a game-changer for agriculture in Nigeria.” The official noted that the infusion of private capital and broader stakeholder involvement would not only enhance the bank’s operations but also address the persistent funding gaps that have hindered the sector’s growth.
For farmers and other stakeholders, the call to join cooperative groups has become urgent. Cooperative societies are expected to play a central role in accessing and distributing credit under the revamped structure. With a significant portion of loans and financial assistance set to be facilitated through these groups, experts are advising farmers to take proactive steps in organizing themselves to maximize the opportunities presented by this new model.
As Nigeria’s agriculture sector awaits the full implementation of the privatisation plan, analysts are optimistic that the restructured Bank of Agriculture will catalyze a much-needed transformation, ushering in a new era of prosperity and sustainability for the nation’s farmers and agribusinesses.
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