NCP Considers BOA-NIRSAL Merger for Agricultural Reform

• NCP discusses BOA’s revitalization, proposing a merger with NIRSAL Microfinance Ltd and injecting fresh capital to support agricultural development
• Vice President Shettima highlights the need for competent leadership in BOA to drive economic transformation, focusing on agriculture’s pivotal role

The National Council on Privatisation (NCP) has deliberated on key recommendations from its committee regarding the Bank of Agriculture (BOA), including a proposed merger with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd and a fresh injection of capital to revitalize the bank.

During the second NCP meeting 2024 at the Presidential Villa, Vice President Kashim Shettima reiterated President Bola Tinubu’s commitment to repositioning and reforming BOA to support the administration’s food security agenda.

Shettima emphasized the importance of appointing competent professionals with integrity to manage the bank, highlighting agriculture as a pivotal sector for economic transformation.

Presenting the committee’s report, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, outlined the major recommendations. These included the immediate reconstitution of the BOA Board of Directors to enhance corporate governance and the merger of BOA with the CBN’s NIRSAL Microfinance Ltd.

Additionally, the proposal suggested ceding National Agricultural Land Development Authority (NALDA) land titles to BOA to increase its capital adequacy for fundraising from institutional investors.

In a bid to enhance transparency and efficiency in the energy sector, the NCP also considered a proposal from the Transmission Company of Nigeria (TCN) to establish an independent system operator.

NCP Chairman, Vice President Shettima, appointed a committee chaired by Mr. Oye Hassan-Odukale, Technical Committee Chairman of NCP, to collaborate with the Special Adviser to the President on Energy and the Federal Ministry of Power. Their mandate includes providing a roadmap and engaging stakeholders in the energy sector.