The National Council on Privatisation (NCP) has received key recommendations from its committee on the Bank of Agriculture (BOA), including a proposed merger with the Central Bank of Nigeria’s NIRSAL Microfinance Limited and injection of a fresh capital to revitalize the bank.
Presenting the committee’s report, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who doubles as NCP vice chairman, said the council’s decision was informed by the challenges identified and the need for urgent resolution of the issues confronting the BOA.
He outlined the major recommendations, including the immediate reconstitution of the Board of Directors of the bank to enhance corporate governance” and “a merger of BOA with the CBN’s NIRSAL Microfinance Ltd.”
He also highlighted the proposal to “cede National Agricultural Land Development Authority (NALDA) land titles to BOA so that it reflects in its Balance Sheet, thus increasing its capital adequacy for the purpose of raising funds from institutional investors.”
Acknowledging the need for financial reinforcement, the minister also identified “adequate capital injection into the bank by the shareholders” as a crucial step forward.
He outlined additional recommendations including “provision and upgrade of the Bank’s ICT infrastructure to automate processes, reduce costs and enhance the bank’s outreach to the grassroots” and “enhance governance and risk management by appointing qualified Board members and senior management with relevant expertise.”
Addressing the second NCP meeting of 2024 at the Presidential Villa in Abuja Wednesday, Vice President Kashim Shettima reiterated President Bola Ahmed Tinubu’s commitment to repositioning the BOA to drive the administration’s food security agenda.
“Let’s get very sound professionals with integrity to manage the bank. If we use it well, it is going to be a tool for the transformation of our economy because agriculture is the key,” he said.
