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From Okwe Obi, Abuja
The federal government has stepped up efforts to tackle one of Nigeria’s biggest agricultural challenges being poor access to finance.
To this end, it has inaugurated a new Board of Directors for the Bank of Agriculture (BOA) and unveiled a major plan to reposition the institution as a modern development finance bank.
The move is expected to strengthen funding for farmers, agribusinesses and agricultural value chain operators as the government intensifies efforts to boost food production, create jobs and achieve food security.
Agriculture remains one of the largest employers of labour in Nigeria, yet millions of farmers continue to struggle to access affordable credit, limiting productivity despite various government intervention programmes.
At the inauguration of the new board recently in Abuja, the Minister of Agriculture and Food Security, Abubakar Kyari, said the Bank of Agriculture would no longer operate under the old order, stressing that the institution was being rebuilt to become the engine of agricultural financing in the country.
He told the newly inaugurated board that their responsibility extended beyond routine governance.
“You are not being invited to preside over an institution. You are being charged to rebuild one.”
Kyari said the board had been entrusted with repositioning the bank into a stronger development finance institution capable of accelerating food security, expanding access to agricultural credit, supporting agribusinesses and driving Nigeria’s agricultural transformation.
According to him, the process of reform had already begun and required commitment from both the board and management to achieve lasting institutional change.
He added that divisions within the institution would not be tolerated.
“There will not be old guard and no new arrivals,” the minister said, insisting that there must be “one board, one management, one institution, and one mandate.”
The new board is chaired by Muhammad Babangida, while Ayodeji Oludare serves as Managing Director and Chief Executive Officer.
Other executive directors are Fatima Garba (Corporate Services), Hakeem Oluwatosin Salami (Operations and Information Technology), and Ka’amuna Khadi (Risk Management), alongside five non-executive directors.
Kyari said the BOA, established in 1972 as the Nigerian Agricultural Bank, has remained Nigeria’s foremost agricultural development finance institution despite several structural changes over the decades.
He disclosed that President Bola Tinubu had approved the recapitalisation of the bank, describing the move as the most significant commitment ever made to agricultural financing in Nigeria.
According to him, the recapitalisation and restructuring exercise is being coordinated by the Bureau of Public Enterprises, with the Ministry of Finance Incorporated and the Central Bank of Nigeria serving as shareholders.
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The minister also highlighted reforms already underway within the bank.
According to him, “the bank has commenced a comprehensive digital transformation covering loan appraisal, disbursement and recovery to ensure faster, more transparent and efficient access to credit for farmers.”
He said the bank is equally spearheading implementation of the Renewed Hope National Agricultural Mechanisation Scheme, which he described as Africa’s largest agricultural mechanisation programme, designed to support more than one million farmers annually.
Kyari further directed the board to integrate the bank’s activities with major government-backed agricultural programmes, including the Special Agro-Industrial Processing Zones, the IFAD-supported Value Chain Development Programme and the World Bank-financed AGROW initiative.
He argued that harmonising the interventions would expand financing opportunities across the agricultural value chain and improve the impact of public investment.
The minister also reminded board members that strong corporate governance would be central to the bank’s success.
“You assume it under a Board Charter that is clear and exacting. To the Board as a body, it gives the work of governance: set strategy, approve the risk appetite, hold management to account, and leave the daily running of the Bank to management.
“On each of you individually, it places duties no colleague can carry for you: declare and avoid conflicts of interest, keep the Bank’s information confidential, and attest to the Directors’ Code of Conduct every year. Directors, hold yourselves to that standard before anyone else has to.”
He announced that the ministry would organise a retreat to acquaint the board with its responsibilities and the operational framework guiding the institution.
Declaring an end to uncoordinated government interventions, Kyari said, “The days of fragmented intervention are behind us.”
Minister of State for Agriculture and Food Security, Aliyu Sabi Abdullahi, described the assignment before the board as a national responsibility, noting that Nigeria has the capacity to become a global agricultural powerhouse if financing reaches genuine farmers and value chain participants.
“The market is available. What is left is for you to establish strong processes and procedures that will ensure the bank delivers financing to genuine farmers and value chain actors involved in production, processing and transportation.
“The experience and pedigree of the board members provided confidence that they could restore the institution’s relevance and unlock greater opportunities for Nigerian farmers,” he said.
Permanent Secretary in the ministry, Olaniyi Ogunbiyi, called on the board to ensure the bank provides affordable and innovative financial services to farmers, agribusinesses, cooperatives, women and youths while strengthening partnerships that would deepen agricultural financing nationwide.
Responding, Board Chairman Muhammad Babangida pledged that the new leadership would focus on restoring the bank’s relevance and delivering measurable impact across the agricultural sector.
Describing the BOA as “the nation’s foremost agricultural development finance institution,” he said the board would uphold integrity, transparency, accountability and good governance in carrying out its mandate.
“Our success will be measured not only by financial performance, but by real impact in empowering farmers, supporting agribusinesses and improving livelihoods,” Babangida said.
