The Bank of Agriculture (BOA) says it will overhaul its lending practices by instituting strict monitoring and evaluation systems supported by on-ground collateral managers and extension service agents.
Ayo Sotinrin, the newly appointed BOA’s Managing Director, said this when he assumed duty in Kaduna.
“The bank will move away from the era of non-performing loans by adopting smart and technology-driven approaches to lending,” Mr Sotinrin said.
He described his new role as a “daunting but critical” responsibility, given the urgent need for reform across the country’s food systems and agricultural financing architecture.
“We need to create new food systems, beginning with the development of seed systems. Mechanisation is key both for smallholder and large-scale farmers,” added Mr Sotinrin.
The bank will move away from the era of non-performing loans by adopting smart and technology-driven approaches to lending.
Mr Sotinrin said that the bank would focus on supporting the entire input value chain, including producing homegrown fertilisers and expanding arable land.
He stressed the importance of data and technology in driving sustainable agricultural financing, noting that baseline data on farm locations, farmer identities, and land use is essential for deploying capital effectively.
“Big data is going to be our friend. Without technology, we won’t be able to track where funds are going or measure growth,” Mr Sotinrin said.
According to him, key agricultural value chains such as ginger, sesame, cocoa, and oil palm will receive priority financing to support export expansion and foreign exchange earnings.
“We must think of agriculture as a source of foreign exchange. We will finance value chains that have the potential to position Nigeria as a global agricultural player,” the BOA boss added. “The bank is undergoing recapitalisation.”
Mr Sotinrin also announced plans to extend banking services to rural and underserved areas, especially targeting the youth population involved in agriculture.
“Our goal is to become not just the biggest agricultural bank in Nigeria but one of the biggest in Africa,” he said. (NAN)
