In a historic move aimed at revitalizing Nigeria’s agricultural financing sector, the Federal Government has unveiled plans to privatize the Bank of Agriculture (BOA). This decision is set to attract private sector investment, broaden access to credit, and enhance operational efficiency, marking a significant shift in the bank’s management and ownership structure.
The Bank of Agriculture, established to provide financial support to farmers and agribusinesses, has long struggled with inefficiencies, inadequate funding, and administrative challenges. The proposed privatization seeks to address these issues and reposition the bank as a more dynamic and inclusive institution capable of better serving Nigeria’s agricultural sector.
Currently, the Ministry of Finance Incorporated (MOFI) holds 60 percent of BOA’s shares, while the Central Bank of Nigeria (CBN) owns the remaining 40 percent. The new privatization plan will reshape this ownership structure, with both MOFI and the CBN reducing their stakes to 20 percent each. A substantial 20 percent will be offered to private investors, while 40 percent will be made available to farmers, farmers’ cooperatives, and ordinary Nigerians through the capital market.
The decision to involve farmers and cooperatives directly in the ownership of BOA is a key component of the government’s strategy to democratize access to credit and empower those directly involved in agriculture. By encouraging farmers to join cooperative groups, the government aims to streamline loan and grant distribution, reduce credit risks, and improve accountability.
This restructuring is expected to unlock new avenues for private sector involvement in agriculture. With private investors bringing innovation, expertise, and capital, BOA is poised for transformation into a more robust institution capable of supporting Nigeria’s agricultural growth and food security goals.
A senior government official described the development as “a game-changer for agriculture in Nigeria,” noting that the influx of private capital and broader stakeholder participation would not only enhance the bank’s operations but also address the longstanding funding gaps that have hindered the sector’s expansion.
For farmers and other stakeholders, the urgency to join cooperative groups has never been greater. These cooperatives will play a pivotal role in accessing and distributing credit under the new model. Experts are advising farmers to organize themselves promptly in order to fully capitalize on the opportunities that this restructuring presents.
As Nigeria’s agriculture sector awaits the full implementation of the privatization plan, analysts remain optimistic that the restructured Bank of Agriculture will drive the transformation needed to usher in a new era of prosperity, sustainability, and growth for the country’s farmers and agribusinesses.