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NCP suggests merging BOA and NIRAL and providing funding to increase food security

Apr 25, 2024 | Politics | 0 comments

The National Council on Privatisation (NCP) has put forth a strategic proposal aimed at revitalizing the Bank of Agriculture (BOA) and driving Nigeria’s food security agenda. Vice President Senator Kashim Shettima, speaking at the second NCP meeting of 2024 in Abuja, highlighted the significance of repositioning the BOA, emphasizing agriculture’s pivotal role in economic transformation.

“We must reposition BOA to drive Nigeria’s food security,” Vice President Shettima emphasized. “Let’s get very sound professionals with integrity to manage the bank. If we use it well, it’s going to be a tool for the transformation of our economy because agriculture is the key.”

The proposal, based on recommendations from the NCP’s committee on BOA chaired by Minister of Finance and Coordinating Minister of the Economy Wale Edun, seeks a comprehensive overhaul of the bank’s operations. Key recommendations include immediate board reconstitution to enhance corporate governance and a merger between BOA and the Central Bank of Nigeria’s NIRSAL Microfinance Ltd.

Furthermore, the committee proposed transferring National Agricultural Land Development Authority (NALDA) land titles to BOA to bolster its capital adequacy for attracting institutional investors. This initiative aligns with the Tinubu administration’s food security goals under the Renewed Hope Agenda.

Recognizing the need for financial reinforcement, Edun stressed the importance of adequate capital injection into the bank by shareholders.

In addition to addressing BOA reforms, the NCP discussed proposals for establishing an independent system operator from the Transmission Company of Nigeria (TCN) and optimizing oil and gas assets through a strategy paper.

Chairing the council, Vice President Shettima appointed committees to collaborate with stakeholders and devise implementation roadmaps. These committees are expected to deliver their reports within three weeks.

This strategic initiative underscores the government’s commitment to agricultural transformation and ensuring food security, reflecting a concerted effort to enhance economic resilience and prosperity for all Nigerians.

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