The Federal Government has called on the Bank of Agriculture (BOA) to adopt innovative financing models and blended finance mechanisms to reduce lending risks and improve access to credit across Nigeria’s agricultural sector.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, made the call on Tuesday at a retreat organised for the newly inaugurated governing board of BOA in Abuja.
Kyari said the constitution of the new board represented an important step towards strengthening the institution and repositioning it to effectively fulfil its mandate.
He urged the bank to deploy guarantees, credit enhancement schemes and other financial instruments to expand access to agricultural financing.
The minister said the ultimate objective should be to establish a stronger and more sustainable agricultural financing ecosystem capable of supporting farmers and agribusinesses across the entire value chain.
He stressed the need to ensure that affordable financial services reach smallholder farmers, women involved in agricultural production and processing, young people seeking opportunities in agribusiness, cooperatives and agricultural enterprises requiring capital for production, processing, storage and marketing.
Kyari acknowledged that Nigeria’s agricultural financing challenges were extensive and could not be addressed by BOA alone.
He therefore urged the new board to strengthen partnerships with the Federal Ministry of Agriculture and Food Security, state governments and development organisations to mobilise additional resources and expand the bank’s reach.
According to him, the Federal Government’s priorities under the Renewed Hope Agenda include increasing food production, improving agricultural productivity, strengthening value chains, reducing post-harvest losses and expanding agro-processing.
He said BOA must be positioned as a key financial instrument for translating these policy priorities into tangible outcomes.
In a goodwill message, the Minister of State for Agriculture, Sen. Aliyu Abdullahi, described BOA as a critical institution in the Federal Government’s efforts to transform Nigeria’s agricultural sector.
He urged the bank to align its financing programmes more closely with the practical challenges confronting farmers and agribusiness operators.
Earlier, the Permanent Secretary of the Federal Ministry of Agriculture and Food Security, Dr Marcus Ogunbiyi, said the retreat was taking place at a critical stage in the transformation of Nigeria’s agricultural sector.
He noted that the Renewed Hope Agenda was repositioning agriculture beyond food production to make it a stronger driver of food security, economic diversification, employment and industrial development.
Chairman of the BOA Board, Muhammad Babangida, said the institution occupied an important position in Nigeria’s economic development, noting that its performance directly affects farmers, agribusinesses, rural communities, food production, employment and national food security.
Babangida assured that the board would provide sound strategic oversight, strengthen corporate governance, hold management accountable for performance and reposition the bank to deliver effectively on its mandate.
He said the board would work towards building a stronger, more efficient and impactful Bank of Agriculture capable of providing greater support to farmers and agribusinesses while contributing meaningfully to Nigeria’s economic growth.
