The federal government has urged the Bank of Agriculture (BOA) to explore innovative financing mechanisms and blended finance arrangements to reduce risks associated with agricultural lending.

The Minister of Agriculture and Food Security, Abubakar Kyari, made the call on Tuesday at a retreat for the newly inaugurated governing board of BOA in Abuja.

Mr Kyari said the inauguration of the board marked an important step in the federal government’s efforts to strengthen the bank’s institutional capacity and reposition it.

He urged the bank to explore guarantees, credit enhancement schemes and other appropriate instruments to expand access to agricultural finance.

“The ultimate objective should be to build a stronger and more sustainable agricultural financing ecosystem capable of supporting farmers and agribusinesses throughout the agricultural value chain.

“We must ensure that affordable and accessible financial services reach smallholder farmers in rural communities, women engaged in agricultural production and processing and young Nigerians seeking opportunities in agribusiness.

“They should also reach cooperatives seeking to expand their operations and agricultural enterprises requiring capital for production, processing, storage and marketing.”

Mr Kyari said the challenges confronting agricultural finance in Nigeria were significant and could not be addressed by BOA alone.

He urged the board to strengthen collaboration with the Federal Ministry of Agriculture and Food Security, state governments and development partners.

“Strategic partnerships will be essential for mobilising additional resources, expanding the bank’s reach and enhancing programme delivery,” he said.

Mr Kyari noted that the federal government priorities under the Renewed Hope Agenda included increasing food production, improving productivity, strengthening agricultural value chains and reducing post-harvest losses.

He added that promoting agro-processing was also central to the agenda.

“The Bank of Agriculture must be positioned as a key financial instrument for translating these policy priorities into tangible outcomes,” he stated.

In a goodwill message, the Minister of State for Agriculture, Aliyu Abdullahi, said BOA occupied a strategic position in transforming Nigeria’s agricultural sector.

“As the nation’s foremost agricultural development finance institution, the bank has a critical role to play in providing accessible and sustainable financing,” he added.

Mr Abdullahi urged the bank to become more responsive to the realities facing Nigerian farmers and agribusinesses.

Earlier, Permanent Secretary, Ministry of Agriculture and Food Security, Marcus Ogunbiyi, said the retreat came at an important moment in the transformation of Nigeria’s agricultural sector.

He said agriculture under the Renewed Hope Agenda was being repositioned beyond food production to support food security, economic diversification, employment generation and industrialisation.

In his remarks, Chairman of the BOA Board, Muhammad Babangida, said the bank occupied a strategic position in Nigeria’s economic development.

He said the bank’s effectiveness had a direct bearing on farmers, agribusinesses, rural communities, food production, employment and national food security.

“Our responsibility as a board is therefore significant. We must provide sound strategic oversight, ensure strong corporate governance, hold management accountable for performance and help position the bank to deliver effectively on its mandate,” he said.

Mr Babangida said the board would strive for a stronger, more efficient and impactful BOA capable of supporting farmers and agribusinesses and contributing to Nigeria’s economic development. 

(NAN)