The National Council on Privatisation (NCP) has announced that it is exploring the possibility of merging the Bank of Agriculture with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd. The council intends to inject fresh capital into the institutions to reinvigorate them after the merger.
During a council meeting at the Presidential Villa in Abuja, the NCP’s Committee on BOA revealed several recommendations. Vice President Kashim Shettima chaired the meeting and emphasized President Bola Tinubu’s commitment to restructuring and improving the Bank of Agriculture. These actions are aimed at advancing the administration’s food security agenda.
According to the vice president, “Let’s get very sound professionals with integrity to manage the bank. If we use it well, it’s going to be a tool for the transformation of our economy because agriculture is the key.,”
During the committee’s report presentation, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, clarified that the council made its decision based on the challenges identified and the pressing need to rectify the issues faced by the bank. Mr. Edun, who also acts as the Vice-Chairman of the NCP, highlighted a few key recommendations, such as the immediate reconstitution of the Bank’s Board of Directors to enhance corporate governance.
The Minister stated, “cede National Agricultural Land Development Authority (NALDA) land titles to BOA so that it would reflect in its Balance Sheet. This will increase the capital adequacy for the purpose of raising funds from institutional investors,”
