BY: Hadiza Garba
The Nigerian government said it would finalize the recapitalization of the bank of agriculture BOA in 90 days, in collaboration with the Bureau of Public Enterprise, BPE.
The minister of agriculture and rural development, Audu Ogbeh, said this at the kick-off meeting for the recapitalization of the bank on Tuesday in Abuja.
The minister said that it was an opportunity for farmers to become owners of the bank. Mr ogbeh expressed worry over the inability of some high profile borrowers to repay loans borrowed from the bank, noting that the ministry would support the bank to minimize failures.
The minister noted that the recapitalization would be done with an estimated N250 billion. He said this will give the bank a chance of becoming a large bank in future just like the one in china and Rabobank of the Netherlands.
Speaking on modalities for the recapitalization, Alex Okoh, director general, Bureau of Public Enterprises, BPE, said the bank had performed sub-optimally due to many challenges it faced since inception in 1972.
According to him, it has become imperative to restructure the bank to substantially improve its operating framework and governance structure with a view to enhancing its efficiency.
Mr. Okoh said that farmers would be encouraged to form cooperative societies to faclitate and guarantee loans repayment and achieve noticeable impact.
According to him, this new strategy shows that BOA will be transformed into a truly Agriculture Finance Bank modeled along the lines of Agriculture Bank of China and Rabobank of the Netherlands, the director-general explained.