Last week, the Federal Government inaugurated the Board of Directors for the Bank of Agriculture (BoA) to revamp agricultural financing and boost food security in the country. BOA was established as the primary bank to support farmers by offering affordable loans to individual farmers, farmer cooperatives, agribusinesses, and small and medium-sized enterprises in the agricultural sector. Members of the newly inaugurated Board include the chairman, Alhaji Muhammad Babangida; Mr Ayodeji Oludare Sotinrin, Managing Director and Chief Executive Officer; Hajiya Fatima Garba, Executive Director, Corporate Services; Mr Hakeem Oluwatosin Salami, Executive Director, Operations and Information Technology; and Hajiya Ka’amuna Ibrahim Khadi, Executive Director, Risk Management, as well as other non-executive directors. Over the years, farmers have expressed concerns over the bank’s inability to help them meet their needs. Despite several attempts to revamp the bank, farmers say the status quo remains, with access to finance shrinking since the collapse of the Anchor Borrowers’ programme, which was introduced by late President Muhammadu Buhari. Last month, a coalition of Nigerian farmers’ groups, comprising smallholder farmers, commodity associations, cooperative societies, agro-processors, and agricultural stakeholders across the country, expressed dissatisfaction and ‘concern over the federal government’s decision to channel all agricultural intervention funds, grants, and programmes through the Bank of Agriculture (BOA).’ Moukhtar Muhammad, the special assistant to the national president of the Coalition of Farmers Associations of Nigeria (CAFAN), told Weekend Trust that their concern arose from the practical realities faced daily by millions of farmers who are the intended beneficiaries of these interventions. He said a large number of farmers, especially those in rural communities, have limited access to Bank of Agriculture branches and services, adding that “delays in accessing funds, inputs, seeds, fertilisers, and other support services often result in farmers missing critical planting windows, thereby reducing productivity and affecting national food output. “The Coalition is deeply concerned about the apparent operational and institutional limitations of the Bank of Agriculture in managing multiple large-scale agricultural intervention programmes simultaneously. Too often, critical funds are trapped in excessive administrative procedures or fail to reach actual practitioners. This has created frustration among farmers and diminished confidence in government agricultural support schemes,” he said. Mr Felix Ekol, CEO, TYMDUAR Global Ltd, with large investment in cocoa, plantain and other tree crops, said that the bank’s current available credit facilities and other strategies create challenges for real farming. “Amount vs. Cost: N50k – N250k in today’s economy barely covers land preparation, labour, and inputs for one acre. With inflation, N100,000 now has the purchasing power of what N10,000 had a few years ago,” he noted. Ekol noted that there is also a problem with the repayment structure, adding that as a result, “farmers end up paying from other income sources, or taking new debt to service the old one.” He also noted that the Group Liability Risk poses problems for farmers, noting that “in a group of 10, if 2 members default, the other 8 are blacklisted. This discourages honest farmers from joining.” Voices from the states Farmers in Kano hardly secure loans from the Bank of Agriculture to help them cultivate farm produce in commercial quantities, which they believe could stimulate economic growth and ensure food security, farmers’ associations told Weekend Trust. Chairman of the National Association of Tomato Growers and Processors and Marketers of Nigeria (NATPAN) in Kano, Sani Danladi Yakadawari, said members of his association have never secured any loan from the bank despite meeting all the criteria set for them. The NATPAN chairman recalled that in 2019, the association requested the sum of ₦6.7 billion as a loan from the BOA but withdrew its application because of many issues. “We haven’t benefited from any loan from the Bank of Agriculture despite several applications for it to support our production. Similarly, Secretary of the Kano state chapter of All Farmers Association of Nigeria AFAN, Alhaji Garba Bichi, said despite having an account with the bank, he has not personally secured loans nor have other farmers who are AFAN members. In Katsina State, many farmers told the Weekend Trust that obtaining loans is often a difficult process. According to Malam Harisu Magaji, the BOA has three branches in Katsina State, covering all 34 local government areas. The branches are located in Katsina, Funtua and Daura. He, however, added that because a large number of farmers reside in rural communities, accessing the bank’s services remains a challenge for many
Don't miss out on breaking stories and in-depth articles.
