As Africa grapples with an estimated $75 billion annual agriculture financing deficit hindering the progress of its vital smallholder farmers, key stakeholders in the sector have issued a strong call to the newly appointed Managing Director of the Bank of Agriculture (BOA), Ayo Sotinrin to urgently address this critical issue and unlock the immense potential of the sector.
Emphasising the indispensable role of financing, stakeholders underscored the need to empower smallholder farmers, enabling them to meet the rapidly escalating demand for food .
The Oloni of Eti-Oni, Osun State, His Royal Majesty Oba Dokun Thompson Gureje IV, stressed the imperative for a fundamental strategic overhaul at the BOA. “There was a need for the bank to review its strategic pivot to enable it reshape the agribusiness landscape to support innovations and solutions to take advantage of demand for food that is set to increase by 60 percent in the coming decades, and respond to a critical need for jobs in emerging markets,” he stated.
Oba Thompson envisioned a comprehensive “ecosystem approach” centered on smallholder farmers, encompassing crucial elements such as warehousing, logistics, and production.
Expressing optimism regarding the new leadership, he added, “The Bank of Agriculture has been sort of stagnant for a while now and I’m happy that it’s been restructured. I expect all the critical issues to be addressed now that there’s a new Managing Director in place.” He urged the BOA to adopt a developmental ethos rather than a purely commercial one, highlighting the necessity for “access to development credits” to truly transform the agricultural sector.
The Oloni emphasised the significance of engaging the next generation, adding that encouraging their participation in agri-business through targeted incentives and robust capacity-building initiatives will lift the fortunes of the economy.
“The Bank of Agriculture can and should actually not only address food security issues but it should also be a catalyst for agri-business, agri-exports to turn around our economy,” he continued.
Echoing similar sentiment , former Dean of the Faculty of Agriculture, University of Ilorin, Prof Abiodun Adeloye, pointed out the BOA’s historical struggle to fulfill its core mandate of supporting genuine farmers. “The Bank of Agriculture is meant to provide funds for farmers, genuine farmers, not political farmers. But a lot of farmers do not get the facility,” he lamented.
He identified cumbersome procedures, a lack of public awareness, and unclear access guidelines as significant impediments. “Nigerians need this facility to improve agricultural productivity, but they do not have a means to access it. It is extremely important. The new MD should look into this and make sure that people have access to that fund.”
A former Executive Director of the National Horticultural Research Institute (NIHORT), Dr. Abayomi Olaniyan, painted a stark picture of the bank’s current operational status. “The place is moribund requiring over-hauling in terms of their functions. How many people are benefiting from their services? Government should come to their rescue financially after putting a structure that can function on ground.”
Commending the recent appointment, the Managing Director , LSK Food Processing, Leke Oluwatosin, articulated his hopes for a revitalised BOA. “My expectation is that he should revive the bank and focus on its mandate. The bank should be well capitalised to grant farmers or food producers access to financing, loans to produce crops and produce food for the nation.”
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He further advocated for the integration of technology to establish a unified national database, stating, “BOA should be technology established to provide a database that can be accessed anywhere in the country.”
The National Coordinator , Organic and Agroecology Initiative (ORAIN), Prof Olugbenga Adeoluwa,called on the newly appointed Managing Director of BOA to place a strong emphasis on supporting organic agriculture as a crucial pathway towards sustainable food systems in Nigeria.
He stressed the numerous benefits of organic farming, highlighting its potential to improve soil health, conserve biodiversity, reduce reliance on harmful synthetic inputs, and ultimately contribute to healthier food for Nigerians.
He emphasised that a dedicated focus from the BOA on this sector would be a significant step towards achieving national food security and environmental sustainability goals.
The Executive Secretary , Commercial Dairy and Ranchers Association of Nigeria (CODARAN), Diana Abasi Akpanya, stressed the critical need for specialised financing instruments tailored to the unique requirements of livestock businesses.
He explained that “livestock operations generally have long gestation periods… and therefore require patient capital – long tenured, low interest financing to succeed.”
Akpanya expressed optimism that the BOA under its new leadership would bridge this crucial gap by designing specific financing products aimed at establishing new livestock ventures and expanding existing ones, with a particular focus on the dairy value chain.
“For the new Managing Director of the Bank of Agriculture, and the administration of the President. Bola Tinubu is an opportunity to leave a legacy of a transformed livestock industry, and a self-sufficient country in livestock and livestock products.”
The Managing Director, Spectra Industries Limited, Durodola Kuteyi, recalled previous recapitalisation efforts but noted the BOA’s relative decline compared to the Bank of Industry (BOI). “Instead of going up as BOI was going but BOA was going down.. With the appointment of a professional it’s the belief of nano, micro, small, and medium-sized enterprises (NMSME) that the federal government is fully ready to revitalise agriculture.”
Chairman and Chief Executive ,Hyst Global Business Limited and producer of Okun rice, Dr. Biodun Onalaja, expressed strong confidence in the capabilities of the new MD. “The new Managing Director of BOA is well known for his achievements and track record in the Agric sector. We believe he will turn around the organisation and the agric sector to the benefit of the nation at large.”
He also advocated for increased autonomy for the BOA, urging the government to “give B O A the full Autonomy as they did to BOI. The bank should not be under the Federal Ministry of Agriculture and Food Security any more.”
Co-founder & Chief Executive, Lancaster Farms, Engr. Patrick Obidoyin, stated his anticipation to see the new MD’s strategic objectives, emphasising the critical need for “genuine support” to ensure national food security and stimulate vital investment in the sector.
Chief Executive .Jemas Energy and Construction Limited, Jerry Sam, called for a significant streamlining of the process for practicing farmers and agripreneur startups to access available funds, particularly highlighting the untapped potential within the South-South region. “It is time to eliminate red tape and bottlenecks in the path of farmers seeking funding.” He also urged targeted support for specific sub-sectors, such as the palm oil industry, which requires funding for essential storage and containment facilities.
President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche, made a direct and impassioned plea,urging the new Managing Director to make funds available to farmers.
According to him, it was time for genuine farmers to receive support from the bank.
The Co Founder , Corporate Farmers International, Prince Ade Ajayi, commended President Bola Tinubu for appointing a young professional to lead the BOA. “I can say this is long overdue and having a young man like him in the helm of affairs of BOA. I expect him to drive a regime of innovative financing as a young person, as a practitioner. He has proven his capacity in the private sector. He has flourished everywhere that he has laid his hands. Raising capital is one of the qualities of a good and successful entrepreneur. This is a good scorecard following him being able to raise over $700 million for companies. I believe he will be able to change a lot of things. As a matter of fact, the BOA needs a lot of restructuring. The current structure of BOA is very dysfunctional in terms of performance. If you do what we call a comparative analysis between BOA and BOI . You can see right now that BOI has contributed a lot to Nigeria. That is professionalism. The competency put into BOI has made the bank thrive. Last year we heard BOI made a profit . That is what we expect the new Managing Director of BOA to bring on board. On our own we are developing blockchain technology that will revolutionise agri-business. We have been researching the project for seven years. In the next six months we will be unveiling it to help the government and the private sector improve the sector and boost agri financing.”
The Regional Director ,World Aquaculture Society African Chapter West Africa Region, Lanre Badmus, expressed his belief that the appointment would lead to a significant repositioning of the bank. “The expectations for the new leadership of BOA are substantial and multifaceted. During the 2023 electioneering campaign , President Bola Tinubu promised revamping the agricultural sector to boost economic growth,job creation and food security. He also promised to stimulate activities across the sector to create engagement for the youths. He promised considerable transformation of agricultural land through irrigation. The new managing Director should articulate a vision that aligns with the expectations of the sector. He should commit to transparency and accountability in reviewing the performance of the bank.”
In his contribution, the President, Association of Small Business Owners of Nigeria(ASBON), Dr Femi Egbesola expressed happiness that a new Managing Director has been appointed for BOA.
“It is indeed a pleasant news that the president has decided to appoint a new Managing Director for BOA. Indeed, it has been what we have been waiting for a long while. And now that he is there, we expect that there will be a total change in the workings of BOA.
For us in the micro, small and medium enterprises (MSME)space, we believe that the new MD should be able to simplify access to loan and credit, especially for small holder farmers, agri-tech startups, and also those in the rural communities and particularly the rural cooperatives too. We also expect that he will introduce a tech driven system for loan application, disbursement, monitoring and customer service. I personally would also expect that he ensures special attention be paid to underserved groups.
My expectation also is that he should be able to provide financing and advisory support to SMEs, not just in farming, but in the agricultural value chain, including storage, packaging, logistics, exports, and the rest. I would love for him to also implement entrepreneurship training, financial literacy, and business incubation programmes as part of the loan package, particularly for those in the informal sector.”
The overwhelming consensus among diverse stakeholders underscores the critical and immediate need for the newly appointed Managing Director of BOA to implement innovative and effective strategies, that would significantly streamline access to financing, and foster a supportive ecosystem that empowers smallholder farmers drive agricultural productivity, ensure national food security, and contribute meaningfully to the nation’s economic prosperity.