BPE Gives Reasons For Planned Restructuring Of BoA

The Bureau of Public Enterprises (BPE) has said that planned restructuring of the Bank of Agriculture (BoA) was aimed at enhancing its governance structure so as to improve its efficiency.

Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh made the clarification at the kick-off meeting for the recapitalisation of the Bank on Tuesday, in Abuja.

Okoh said that since inception in 1972, that the Bank had performed sub-optimally due to the myriad of challenges it faced. 

According to him, the restructuring exercise would lead to the privatisation of equity of the bank.

“We envisage that the Central Bank equity will be reduced to 20 per cent, Federal Ministry of Finance (incorporated) will be reduced to 20 per cent; the government agencies equity in the new bank will be a minority of 40 per cent. We will then invite private sector investors who will own 20 per cent and the remaining 40 per cent equity will be owned by farmers and farmers’ cooperatives”. 

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A release signed by Amina  Tukur OthmanHead, Public Communications  of BPE quotes Okoh as stating that the new strategy lead to BoA being transformed into a truly agriculture finance bank.

We envisage that the Central Bank equity will be reduced to 20 per cent, Federal Ministry of Finance (incorporated) will be reduced to 20 per cent; the government agencies equity in the new bank will be a minority of 40 per cent. We will then invite private sector investors who will own 20 per cent and the remaining 40 per cent equity will be owned by farmers and farmers’ cooperatives”. 

A release signed by Amina  Tukur OthmanHead, Public Communications  of BPE quotes Okoh as stating that the new strategy lead to BoA being transformed into a truly agriculture finance bank.

BoA Okoh said upon establishment in 1972, that BoA was vested with the responsibility of providing low cost credit to small holder and commercial farmers. 

He, however, lamented that the Bank had been unable to fulfill its responsibilities due to its current structure, stressing that the proposed restructuring and recapitalisation of the Bank would seek to remedy this.

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According to him, the bank would transform into an agricultural finance bank with functional branches in all the local government areas and major towns in Nigeria.

This he added would lead to farmers forming cooperatives and thrift societies throughout the six geo-political zones for the purpose of participating in the ownership of the Bank.

Okoh  added that the model would fundamentally ensure that the BOA becomes a farmers’ bank owned by farmers.

Measures, he said, would be put in place to take non-performing credit facilities off the balance sheet and books of the Bank and possibly sold off to a factor agent.

He commended the Minister of Agriculture & Rural Development, Chief Audu Ogbeh who doubles as the Chairman of the Steering Committee for the Project for his passion and commitment to the development of agriculture in Nigeria.

He also expressed the optimism that upon conclusion, that the BoA would be in a position to make positive impacts in the area of arable farming.