…Reaffirms FG’s Commitment to N1 trillion Recapitalisation Plan
The Federal Government, through the Bank of Agriculture (BOA), is gearing up to recover over $20 billion in debt owed to the bank. This is also as it reaffirms its commitment to the N1 trillion recapitalisation plan ($ 1 billion) for the bank.
This was revealed by the newly appointed managing director/chief executive officer, BOA, Ayo Sotinrin, who gave the revelation while briefing Newsmen on the sidelines of the National Youth Dialogue on Inclusive Food Systems, hosted by Action Aid Nigeria in partnership with the Nigerian Senate and support from GIZ in Abuja on Thursday, April 15, 2025.
According to Sotinrin, “The bank is launching ‘Operation Recover All’ to appeal to debtors to repay their loans.” “We’re sending letters to everyone who owes the bank money, appealing to them to bring all our money back without omitting words,” the CEO stated.
“If youcano pay all your loans, if we’re able to recover this facility from you, then you’re entitled to a new facility, but with a different condition.” The bank’s efforts to recover the debts are part of a broader strategy to recapitalise BOA and give it a new face, he said.
The BOA boss further reaffirmed President Bola Ahmed Tinubu’s commitment to inject fresh capital into the bank, with a proposed recapitalisation fund of N1.5 trillion (approximately $1 billion).
“We’re not going to blow up our balance sheet,” the CEO assured. “We intend to also raise international capital. We want to leverage our balance sheet to actually do a few X more so that we can cover a lot of the value chains within the sector.”
The bank’s focus on rural agriculture financing aims to support 40 to 70 million farmers across the country, promoting agriculture as a business rather than just a way of life. To increase yield from 1 ton per hectare to 9 tons per hectare, BOA hopes to solve food insecurity and reduce food inflation in Nigeria.
As part of its restructuring efforts, BOA plans to digitise its operations, enabling faster access to capital for farmers and other stakeholders. The bank’s CEO emphasised that enforcement action will follow the appeal to debtors, with sanctions likely for those who fail to meet their payment obligations.
The recovery of the $20 billion debt is crucial to BOA’s recapitalisation and revitalisation plans. “With the support of the Federal Government, the bank is optimistic about achieving its goals and becoming a key player in Nigeria’s agricultural development”, he said.
