The National Council on Privatization announced its contemplation of merging the Bank of Agriculture with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd.
Additionally, the council intends to infuse fresh capital into these institutions to revitalize them post-merger.
These propositions stemmed from recommendations put forth by the NCP’s Committee on BOA, disclosed during a council meeting held at the Presidential Villa in Abuja.
Vice President Kashim Shettima, leading the meeting, underscored President Bola Tinubu’s commitment to restructuring and enhancing the Bank of Agriculture to bolster the administration’s food security agenda.
Shettima emphasized the importance of appointing highly competent professionals with impeccable integrity to oversee the bank’s operations, highlighting agriculture’s pivotal role in transforming the economy.
During the presentation of the committee’s findings, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, elaborated on the council’s decisions, which were influenced by the identified challenges confronting the bank and the imperative to address them promptly.
As the Vice-Chairman of the NCP, Edun emphasized key recommendations, including the immediate reconstitution of the Bank’s Board of Directors to enhance corporate governance standards.
He proposed the transfer of National Agricultural Land Development Authority land titles to BOA to bolster its capital adequacy and facilitate fundraising from institutional investors.
Edun also stressed the necessity of substantial capital injections from shareholders to reinforce the bank financially.
Furthermore, in the energy sector, the NCP proposed the establishment of an independent system operator for the Transmission Company of Nigeria to improve transparency and efficiency within the sector.
