The federal government on Friday set performance targets for the newly inaugurated board of the Bank of Agriculture (BOA), directing the institution to expand credit to genuine farmers and agribusinesses while enforcing strict loan recovery.
Minister of Agriculture and Food Security, Abubakar Kyari said that the Federal Government is strengthening agricultural financing to drive food security agenda.
Speaking at the inauguration of the Bank’s Board of Directors in Abuja, the minister maintained that the recapitalisation of the Bank, approved by President Bola Tinubu, must translate into measurable lending to smallholder farmers, women and youths rather than increased administrative costs.
He stressed that the federal government would judge the bank by its ability to channel finance to productive agricultural enterprises and recover loans efficiently.
Kyari described the ongoing restructuring of the Bank as the most ambitious intervention in agricultural finance in Nigeria’s history, noting that the exercise is being supervised by the Bureau of Public Enterprises alongside the Ministry of Finance Incorporated and the Central Bank of Nigeria as shareholders.
He said the Board had been entrusted with rebuilding an institution that has remained central to financing Nigeria’s agricultural sector since its establishment in 1972, despite undergoing several name changes over the decades.
The minister formally inaugurated the board chaired by Muhammad Babangida, with Ayodeji Oludare Sotinrin serving as Managing Director and Chief Executive Officer.
Other members include Fatima Garba, Hakeem Oluwatosin Salami, Ka’amuna Ibrahim Khadi and five non-executive directors.
He said, “We expect credit that reaches real farmers and real agribusinesses and every honest actor along the value chain, appraised on merit and recovered with discipline, because a development bank that does not recover its loans develops nothing.
“We expect the recapitalization, as it is completed, to translate into measurable lending to smallholders, women and youth, not into overheads. And we expect the Bank to become a lean, digital, service-driven network that puts the customer first.You are not being invited to preside over an institution. You are being charged to rebuild one.”
Kyari said the Board was assuming office at a critical period when the bank is digitising its operations to accelerate loan appraisal, disbursement and recovery while supporting key national agricultural initiatives.
He urged the Board to align the bank’s operations with major federal government’s agricultural programmes, including the Special Agro-Industrial Processing Zones, the IFAD-supported Value Chain Development Programme and the World Bank-backed AGROW initiative to ensure coordinated financing across the agricultural value chain.
The minister also reminded directors of their governance responsibilities under the board charter , including maintaining transparency, avoiding conflicts of interest and ensuring effective oversight while leaving day-to-day management to the executive team.
Responding on behalf of the Board, chairman, Muhammad Babangida pledged to provide strategic leadership that would strengthen the institution and expand access to agricultural finance across the country.
He said the Board would prioritise integrity, accountability, professionalism and sound corporate governance while working closely with management, shareholders and development partners to improve operational efficiency and deepen stakeholder confidence.
According to Babangida, the Board recognises that its success will not be measured solely by financial returns but by its contribution to empowering farmers, supporting agribusinesses, creating jobs and improving livelihoods, adding that members are committed to justifying the confidence reposed in them by the federal government.
“As a Board, we are fully committed to providing sound strategic oversight anchored on integrity, transparency, accountability, professionalism, and good governance.
“Our success will ultimately be measured not only by financial performance, but by the real impact we make in empowering farmers, supporting agribusinesses, creating jobs, and improving livelihoods.
“We accept this responsibility with humility and with a firm commitment to justify the confidence placed in us,” Babangida said.
