Business
Bank Of Agriculture Disburses N46bn
The Bank of Agriculture (BOA), formerly the Nigerian Agriculture Cooperative and Rural Development Bank (NACRDB), has provided six million jobs and disbursed N46 billion since its inception in 2000.
The Managing Director, Dr Mohammed Santuraki, made this disclosure to newsmen in Abuja yesterday.
He said that although the bank encountered many constraints, “we still disburse an average of N5 hundred million quarterly and the disbursement will be a continuous exercise.”
He said that the bank was going to increase its lending by N10billion before the end of the year, with special focus on small-scale farmers.
He said, however, that “with all the new things coming up in agriculture development, we need to scale that up and we are planning to spend N10 billion this year on mainly small holder farmers.
“This is because we think they are the most productive sub-sector of the agricultural value chain.
He added that the bank had introduced a new scheme tagged “Credit, which includes credit and extension services to all the loan beneficiaries” to assist small scale farmers.
“Commercial agriculture farmers are also important and they havevarious schemes supporting them.
“We are giving loans at subsidised rate of eight per cent for the small holder farmers but the challenge is that there is subsidy in the loan we give and the government does not compensate us systematically”.
He said “the breakeven point for the agricultural lending in Nigeria was 14 per cent “and if you lend below that, you are losing money.
“For us as a development finance institution, we see it as part of our contribution to the society, but government needs to find a way of compensating us for the service”.
Santuraki said that the bank was formed in 2000 by the merger of Peoples Bank of Nigeria and the risk assets of Family Economic Advancement Programme and the NACB.
According to him, the proposal then was to recapitalise the bank to the tune of N50 billion.
Unfortunately, 10 years later, the bank only received N20 billion over a period of eight years in about six installments which had adverse effect on the lending system of the bank.
He said the development made it not sufficiently capitalised to do its normal mandate.
The Managing Director said the management of the bank had commenced restructuring of the bank, starting with changing of its name from the NACRDB to the Bank of Agriculture.
This is, “aimed at reshaping the feelings of the people toward the bank.
“We will soon commence rebranding and embark on comprehensive market re-entry strategy for the bank to compete favourably with its counterparts in the commercial sector,” he said.
He disclosed that the bank’s operational model would have rural mobilisation component so that it could drive both the rural savings and agricultural development.
He announced that the bank now has experts on seeds and inputs that would advise farmers on how to maximise yields, which was a big challenge in the farming sub-sector.
The bank is, therefore, doing all things possible to maintain its reach and improve access to the farmers through Micro Finance Banks (MFBs).
“We are also interested in mobile banking and improved information technology to cut down the cost of credit delivery and the only way to do this is being able to scale up the technology platform,” he said.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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