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.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.