Addressing Arrears and Strengthening Agricultural Financing in Nigeria
Nigeria’s agricultural sector has received a significant boost with President Bola Tinubu’s directive to the Bank of Agriculture (BOA) to clear N30 billion in outstanding arrears owed to agro-dealers and input suppliers. This initiative, funded by the African Development Bank (AfDB), marks a crucial step towards bolstering support for farmers and stabilizing the nation’s food supply chain. The directive comes as part of the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) program and underscores the government’s commitment to revitalizing the agricultural sector.
The release of these funds, representing the second tranche from the AfDB for NAGS-AP implementation, addresses outstanding obligations from the 2024 dry and wet season programs. Finance Minister and Coordinating Minister of the Economy, Wale Edun, has prioritized the disbursement process, emphasizing the urgent need to support agricultural stakeholders. BOA, designated as the custodian of all agricultural financing program funds, has pledged to expedite payments to complying agro-dealers within 24 hours using its electronic wallet system, ensuring transparency and efficiency. This commitment to timely disbursement signifies a turning point for the sector, entrusting BOA with a crucial role in facilitating financial support to vital players in food production.
The NAGS-AP Secretariat and BOA initiated the payment process on September 18, 2025, following the handover of beneficiary data. BOA’s Managing Director/Chief Executive, Ayo Sotinrin, recognizes the historic significance of this appointment, viewing it as a significant stride towards ensuring Nigeria’s food security. He emphasized the importance of collaboration with the NAGS-AP team to streamline processes and deliver payments directly to beneficiaries, fostering a shift from subsistence farming to sustainable and profitable agribusiness ventures.
To facilitate seamless payment processing, pre-qualified and registered agro-dealers and suppliers are required to open a BOA account, a mandatory step for claim processing. This free and readily accessible online registration ensures efficient fund disbursement and minimizes potential setbacks. Sotinrin commended President Tinubu and other stakeholders for securing the funds and urged beneficiaries to comply promptly with the registration requirement.
President Tinubu’s commitment to agricultural development extends beyond addressing financial arrears. In a recent meeting with Brazilian President Luiz Inacio Lula Da Silva, he reiterated his resolve to eliminate bottlenecks hindering the agricultural sector’s full potential. Acknowledging the detrimental impact of bureaucracy on the sector’s progress, Tinubu highlighted ongoing reforms aimed at enhancing Nigeria’s global competitiveness, particularly in agriculture, a sector where the country already enjoys a competitive edge.
This comprehensive strategy, encompassing financial support and bureaucratic reforms, reflects the government’s proactive approach to transforming the agricultural sector. The timely disbursement of funds, coupled with enhanced efficiency in financial processes, aims to create a conducive environment for agricultural growth and development. By directly empowering agro-dealers and input suppliers, the government seeks to stimulate economic activity within the agricultural value chain, contributing to increased food production and food security for the nation. This commitment to a strong and resilient agricultural sector further reinforces Nigeria’s position as a leading agricultural player in the region.
The strategic partnership between BOA and NAGS-AP, facilitated by the AfDB funding, represents a significant investment in Nigeria’s agricultural future. The collaborative effort focuses on optimizing resource allocation and streamlining financial processes to support farmers and related businesses. This integrated approach not only addresses immediate financial needs but also sets the stage for sustainable agricultural development and long-term food security. By empowering stakeholders across the agricultural value chain, the government is fostering a dynamic and resilient sector capable of contributing significantly to national economic growth.
