The Federal Government, through the Bank of Agriculture (BoA), has announced a strategic plan to recover over $20 billion in non-performing loans as part of a broader recapitalisation and operational overhaul aimed at revitalising Nigeria’s agricultural financing landscape.
This development was disclosed by Ayo Sotinrin, the newly appointed Managing Director and Chief Executive Officer of the BoA, during a media briefing held on the sidelines of the National Youth Dialogue on Inclusive Food Systems in Abuja.
The event was organised by ActionAid Nigeria in collaboration with the Nigerian Senate and supported by GIZ.
According to Sotinrin, the recovery initiative, Operation Recover All, is designed to compel defaulting debtors to return funds owed to the bank.
He explained that letters are currently being dispatched to all indebted clients, urging them to settle their outstanding obligations.
“We’re sending letters to everyone who owes the bank money, appealing to them to bring all our monies back without omitting words,” Sotinrin stated. “If you’re able to pay your loans, you will be eligible for a new facility under revised conditions.”
The initiative is part of a wider plan to recapitalise and digitise the Bank of Agriculture. The Federal Government has pledged a N1 trillion ($1 billion) capital injection into the institution to strengthen its operational capacity and financial position.
Sotinrin reaffirmed the Federal Government’s support, noting that President Bola Ahmed Tinubu has approved a total recapitalisation target of N1.5 trillion.
The BoA intends to leverage this funding to raise additional international capital, scale its operations, and expand coverage across key agricultural value chains.
“We’re not going to blow up our balance sheet,” Sotinrin noted. “We intend to raise international capital and leverage our existing balance sheet to do more, reaching more farmers and creating greater impact.”
The bank’s recovery effort will be followed by enforcement actions against non-compliant debtors, with potential sanctions for those who fail to fulfil their repayment obligations.
As part of its restructuring strategy, BoA will also digitise its operations, enabling more efficient loan disbursement and faster capital access for farmers and agribusiness operators across the country. This move is expected to reduce bureaucratic bottlenecks and enhance transparency within the bank’s processes.
BoA’s renewed focus will prioritise financing for smallholder farmers and rural agribusinesses, targeting between 40 to 70 million farmers nationwide. The bank aims to shift agriculture from a subsistence activity to a sustainable business model.
One of the bank’s key productivity goals is to increase crop yield from the current national average of 1 ton per hectare to as high as 9 tons per hectare.
The bank believes that achieving this milestone will significantly reduce food inflation and bolster food security in Nigeria.
Sotinrin stated that the transformation of BoA is integral to the Tinubu administration’s economic diversification agenda and will play a critical role in boosting local production, reducing import dependency and expanding Nigeria’s agro-export potential.
The BoA management maintains that recovering the $20 billion debt is fundamental to restoring the bank’s financial health and positioning it to become the leading agricultural development bank in Africa.
“With the support of the Federal Government, we’re confident of meeting our strategic goals,” Sotinrin concluded.
BoA’s ongoing transformation, backed by strong federal support and a robust recapitalisation plan, underscores the government’s intent to revitalise the agricultural sector and establish a more resilient food system across the country.
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