N243m debt: People see loans as national cake, use money for weddings, says BOA

The Bank of Agriculture (BOA) says recovering N243 million in loans disbursed in Kwara state has been difficult because debtors see it as their share of the national cake.

Speaking on behalf of the company, Dele Aderibigbe, BOA Ilorin branch manager, said the loan has been classified as bad debt, however, recovery efforts are still being made.

According to NAN on Monday, Aderibigbe said 150 debtors owe the bank N243 million — disbursed between 2011 and 2024.

“The loan is meant to be a revolving loan to be paid back to give other people opportunity, but it is unfortunate that some people see it as a national cake that should be eaten from,” he said.

Aderibigbe said some of the debtors did not use the loan — termed warehouse loan — for the purpose it was disbursed, as they either married a second wife or held parties with it.

Despite the struggle to recover the debt, Aderibigbe said the debtors would not go scot-free.

He said the BOA is using their guarantors and some other measures to arrest them, adding that telecommunication companies are also being used to track the debtors.

Speaking on BOA’s due diligence before loan disbursement, Aderibigbe said the bank conducts project identification visits, pre-disbursement visits, and pre-take-off visits before the applicants are handed the loan.

He said investigations are carried out on the project, but the application process and payment method are not cumbersome — with applicants accessing between N250,000 and N1.5 million at 14 percent reducing balance interest.