By Faridat Salifu
The Federal Government has reiterated commitment to completing the recapitalisation of the Bank of Agriculture (BoA) by the end of the first quarter of 2025, aiming to strengthen funding for sustainable smallholder farming initiatives.
The long-awaited recapitalisation is viewed as a critical step toward addressing the chronic underfunding of commercial agriculture in Nigeria, which has hindered the sector’s capacity for growth and sustainability.
Between 2014 and 2021, the highest loan allocation to agriculture from commercial banks was just N1.04 trillion in 2020, amounting to a mere 5.15 percent of the total commercial bank loans during that period.
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This limited financial support has hampered the sector’s ability to transition to more sustainable practices, despite the increasing demand for food security and climate-resilient agriculture.
Sen. Abubakar Kyari, Minister of Agriculture and Food Security, emphasized that the recapitalisation would be finalized by the end of March 2025, a development he believes will enhance the ability of the Bank of Agriculture with its extensive network of 109 branches to provide targeted financial support for sustainable agricultural practices, especially among smallholder farmers.
Kyari added that the revamped bank will play a pivotal role in financing eco-friendly farming techniques, reducing food inflation, and contributing to the nation’s long-term food security goals.
The recapitalisation is expected to facilitate more substantial investments in environmentally sustainable farming methods, helping to mitigate the effects of climate change on agriculture while improving rural livelihoods.
The move aligns with broader efforts to transition Nigeria’s agricultural sector toward greater resilience and sustainability, addressing both economic and environmental challenges.
