The National Council on Privatisation (NCP) on Wednesday hinted of its intention of merging the Bank of Agriculture with the Central Bank of Nigeria’s (CBN) NIRSAL Microfinance Ltd as part of its efforts to improve the operational efficiency of government-owned institutions nationwide.
To achieve this goal, the council also expressed its plans to inject new capital into the two entities to revitalise them after the merger.
These decisions, which were unveiled during the NCP’s meeting at the Presidential Villa in Abuja, were among the recommendations from NCP’s Committee on BOA
The Chairman of the council, Vice President Kashim Shettima, emphasized at the meeting President Bola Tinubu’s dedication to restructuring and improving the BOA to enhance the implementation of the government’s food security agenda.
He said: “Let’s get very sound professionals with integrity to manage the bank. If we use it well, it’s going to be a tool for the transformation of our economy because agriculture is the key.”
During the presentation of the committee’s report, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, maintained that the council’s decision was informed by the identified challenges of the bank and the urgent need to address them.
Edun, who is the Vice-Chairman of the council, highlighted some of the committee’s key recommendations, including the immediate reconstitution of the Bank’s Board of Directors to improve corporate governance.
He canvassed: “Cede National Agricultural Land Development Authority (NALDA) land titles to BOA so that it would reflect in its Balance Sheet. This will increase the capital adequacy for the purpose of raising funds from institutional investors.”
While appreciating the importance of financially reinforcing the bank, the minister stressed the necessity of substantial capital contributions from its shareholders to mitigate its funding constraints.
