BoA Sources over Two Billion Dollars to Fund Mechanised Agriculture
The Bank of Agriculture (BoA) on Thursday revealed that it had sourced over $2 billion for the funding of mechanised commercial agriculture in the country.
Dr Kabiru Adamu, Managing Director, Bank of Agriculture noted that the over $2 billion was different from the bank’s targeted N250 billion recapitalization funds which would focus mainly on supporting small holder farmers in the country.
Adamu who disclosed this during a press conference in Kaduna, said that the bank was in its final stage of restructuring which would massively attract global funds and investors.
“There is a need to generate funds that will make the bank more competitive in the industry and in the world.
“The bank does not rely on customers’ deposits to finance its activities, there are also development partners ready and waiting for the exercise to be completed.
“We have been collaborating with several development partners who are ready to support the bank in agric mechanization, which means they would provide funding on that aspect.
“We have signed an agreement with DGK in Poland, who are ready to pump in funds.
“We have been to another bank in Brazil, DMDS which is in partnership with the Federal government and are planning to provide $2 billion loan to address the issue of mechanization.
“Why mechanization is important is because the traditional way of doing farming can no longer hold, so there is the need to imbibe the culture of modern agric practices, we have done a lot on that,” Adamu said.
He said the bank would complete the process of restructuring within the next 14 weeks and would be recapitalized targeting between N200 billion and N250 billion to provide single digit loan at nine per cent.
The managing director, had earlier received a team from Lead Capital Consortium, whom the Federal Government mandated to restructure the bank.
He assured of the bank’s capacity to provide financial support to small holder farmers across the country through its 140 branches.
“Let me make it very clear that the bank is sound, solid and it’s carrying out its mandate without any problem.
“From the strategic point, the bank has six zonal offices located along the six geopolitical zones and over 140 branches across Nigeria.
“And the focus of the branches is to support the small holder farmer, which is the core mandate of the bank.
“We have lending capacity to our category of customers (Small Holder Farmers) at single digit of nine per cent and no bank in Nigeria has sustained that effort apart from bank of agriculture,” Adamu said.
Mr. Wale Adewumi, Managing Director of Lead Capital PLC, said Federal Government had appointed the Consortium to restructure the bank.
According to him, the bank will receive fresh financing with a new CBN license that would allow the institution to offer full rural banking services.
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