The Federal Government disclosed that it will be finalizing the recapitalization of the Bank of Agriculture (BoA) in 90 days. This will be done in partnership with the Bureau of Public Enterprise (BPE).
The Minister of Agriculture and Rural Development, Mr. Audu I Ogbeh made the disclosure during the flag-off meeting on Tuesday in Abuja.
According to the minister, the recapitalization is aimed at giving farmers the opportunity to own the bank and strengthen the agricultural sector. This will cost an estimated N250 billion.
Ogbeh also said the plan is to make the BoA similar to Rabobank of the Netherlands which is responsible for 75 percent of all credits given to banks in the European Union (EU) or the Agriculture Bank of China which has about eight million clients.
He, however, raised concern over the inability of some high-profile borrowers to repay loans.
Also Speaking, the Director-General of BPE, Mr. Alex Okoh said the development is necessary, as the bank needs restructuring to achieve utmost efficiency.
He explained that the process will encourage the farmers to form cooperative societies to facilitate and design a guaranteed loan repayment system. This will lead to the privatization of equity of the bank to 20 percent with the cooperation of the Central Bank of Nigeria and the Ministry of Finance.
Okoh further noted that the process is modeled in line with the Agriculture Bank of China and the Rabobank.