NCP gathers, may combine NIRSAL and BOA

Apr 25, 2024 | Politics | 0 comments

During the second meeting of 2024 at the Presidential Villa, the National Council on Privatisation (NCP) received pivotal recommendations from its committee on the Bank of Agriculture (BOA), aiming to revitalize the institution. These proposals include merging BOA with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd and injecting fresh capital to enhance its operations.

Vice President Kashim Shettima, echoing President Bola Tinubu’s dedication to agricultural reform, emphasized the significance of proficient management in leveraging BOA as a catalyst for economic transformation.

Minister of Finance and NCP Vice Chairman Wale Edun presented the committee’s findings, underscoring the urgency of resolving BOA’s challenges. Key recommendations included:

  • We are restructuring the board of directors.
  • Merging BOA with NIRSAL Microfinance Ltd.
  • It is transferring National Agricultural Land Development Authority (NALDA) land titles to BOA to bolster its capital adequacy.

Recognising the necessity for financial reinforcement, Edun highlighted the importance of shareholders’ capital injection to propel BOA’s resurgence.

These recommendations follow the establishment of an inter-ministerial body in December 2023 to review BOA’s affairs. The NCP had previously approved collaborative efforts to restructure and recapitalize BOA in 2016.

Additional recommendations outlined by Edun include upgrading BOA’s ICT infrastructure and enhancing governance and risk management.

In a bid to enhance transparency and efficiency in the energy sector, the NCP considered the proposal from the Transmission Company of Nigeria (TCN) to establish an independent system operator. A committee was formed to engage stakeholders and provide a roadmap for implementation.

Furthermore, a committee was tasked with examining issues concerning oil and gas infrastructure and optimizing the nation’s oil and gas assets. This committee, chaired by the Minister for Budget and Economic Planning, includes key stakeholders from relevant ministries and the NCP Secretariat. It has a mandate to deliver its report within three weeks.

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