President Bola Tinubu has directed the Bank of Agriculture (BOA) to settle outstanding arrears of N30 billion owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP).
The directive follows the release of funds from the African Development Bank (AfDB), according to a statement issued Wednesday by the bank’s External Media Relations Lead, Judith Ekwebelem.
She explained that the move is designed to stabilise Nigeria’s food supply chain by strengthening support for farmers, adding that the Federal Government has also designated BOA as the custodian of all agricultural financing programme funds.
“The directive marks a turning point for the sector, with BOA tasked to ensure smooth and timely disbursement of funds to critical stakeholders in food production,” the statement read.
BOA pledged to execute the approved payment schedule urgently, using its electronic wallet system to ensure that complying agro-dealers receive payment within 24 hours. The bank also promised to provide weekly updates until completion.
Ekwebelem noted that the N30bn represented the second tranche of AfDB funds for the 2024 dry and wet season programmes. She added that Finance Minister Wale Edun had instructed that the process be treated as a priority.
Managing Director/Chief Executive of BOA, Ayo Sotinrin, described the directive as a “historic responsibility” for Nigeria’s agricultural sector.
“This is more than just a fund; it is a bold commitment to ensuring our nation’s food security,” Sotinrin said. “By working hand-in-hand with the NAGS-AP team, we are cutting through bureaucratic delays to get payments directly to agro-dealers and suppliers.”
He added that only pre-qualified and registered agro-dealers with BOA accounts would be eligible, stressing that registration is free and can be completed online.
President Tinubu, who recently met with Brazilian President Luiz Inácio Lula da Silva, also reiterated his administration’s commitment to removing bottlenecks hindering Nigeria’s agricultural potential. He said reforms were already underway to strengthen food sovereignty and boost agricultural exports.
