Tinubu directs BOA to pay NAGS-AP arrears, releases N30bn AfDB fund

PRESIDENT Bola Ahmed Tinubu has ordered the Bank of Agriculture (BOA) to clear outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP), following the release of N30 billion from the African Development Bank (AfDB).

The directive, aimed at fast-tracking support for farmers and stabilising Nigeria’s food supply chain, also designates BOA as custodian of all agricultural financing programme funds.

In a statement signed by its External Media Relations Lead, Judith Ekwebelem, BOA confirmed that the N30 billion represents the second tranche released by AfDB for NAGS-AP implementation and will cover arrears from the 2024 dry and wet season programmes.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed that the payments be treated with the “highest priority.” The NAGS-AP Secretariat and BOA commenced the exercise on September 18 with the formal handover of beneficiary data.

The Managing Director/Chief Executive of BOA, Mr. Ayo Sotinrin, described the mandate as a “defining moment” for Nigeria’s agricultural sector.

He said: “This is more than just a fund; it is a bold commitment to ensuring our nation’s food security. By working hand-in-hand with the NAGS-AP team, we are cutting through bureaucratic delays to get payments directly to agro-dealers and suppliers.”

“This is a truly defining moment for our agricultural sector.This is more than just a fund; it is a bold commitment to ensuring our nation’s food security.

“By working hand-in-hand with the NAGS-AP team, we are cutting through bureaucratic delays to get payments directly to agro-dealers and suppliers. We are unlocking opportunities for farmers to move beyond subsistence farming into sustainable and profitable agribusiness.”

The statement added that BOA has outlined conditions for pre-qualified and registered agro-dealers and suppliers eligible for payment under the scheme. These include: opening a BOA account, a mandatory step for claim processing. Registration is free and can be completed.

The bank pledged to execute payments with urgency through its electronic wallet system, ensuring that all verified agro-dealers receive funds within 24 hours. It also promised to provide weekly progress updates until completion.

He said to qualify, beneficiaries must have been pre-registered under NAGS-AP before 2025, received at least one prior payment, and complete account activation with BOA. Account opening is mandatory, free, and available online.

Sotinrin urged all beneficiaries to comply promptly, warning that delays in meeting requirements could affect payment processing.

BOA expressed appreciation to President Tinubu and relevant ministers, describing the assignment as crucial to Nigeria’s food security and agricultural transformation.

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