The National Council on Privatization (NCP) stated on Wednesday that consideration is ongoing in order to merge the Bank of Agriculture with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd.
NCP also said that it has plans to inject new capital into the institutions to make it better following the merger. These were among the recommendations from NCP’s Committee on BOA, which were revealed during a council meeting at the Presidential Villa in Abuja.
The meeting which was chaired by the country’s Vice President Kashim Shettima, emphasized the President’s dedication to restructuring and improving the Bank of Agriculture to advance the administration’s food security agenda.
The country’s vice president stated:
“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.”
The Minister of Finance and coordinating minister of the economy, Mr. Wale Edun during the presentation of the committee’s report, Mr. Wale Edun, detailed that the council’s decision was based on the identified challenges and the recent need to address the issues facing the bank.
Edun, who also the Vice-Chairman of the NCP, highlighted key recommendations, which includes the immediate reconstitution of the Bank’s Board of Directors to improve corporate governance.
“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,” Mr Edun stated.
