NCP committee proposes merging BOA with NIRSAL to boost funds

The National Council on Privatisation (NCP) has received key recommendations from its committee to merge the Bank of Agriculture (BOA) with the Central Bank of Nigeria’s (CBN) NIRSAL Microfinance Limited.

The council also plans a fresh capital injection to revitalise the bank.

Wale Edun, minister of finance and coordinating minister of the economy, who doubles as NCP vice-chairman, presented the committee’s report in Abuja on April 24.

Edun said the decision was informed by the challenges identified and the need for urgent resolution of the issues confronting the bank.

He also outlined the major recommendations, including “the immediate reconstitution of the board of directors of the bank to enhance corporate governance” and “a merger of BOA with the CBN’s NIRSAL Microfinance Ltd”.

The minister also recommended that the land titles of the National Agricultural Land Development Authority (NALDA) be ceded to “BOA so that it reflects in its Balance Sheet, thus increasing its capital adequacy for the purpose of raising funds from institutional investors”.

“This will increase the capital adequacy for the purpose of raising funds from institutional investors,” he said.

Edun further outlined additional recommendations, including the “provision and upgrade of the bank’s ICT infrastructure to automate processes, reduce costs and enhance the bank’s outreach to the grassroots”.

“Enhance governance and risk management by appointing qualified board members and senior management with relevant expertise,” he added.

MORE RECOMMENDATIONS

To promote transparency and efficiency in the nation’s energy sector, the NCP also proposed seeking approval for the establishment of an independent system operator from the Transmission Company of Nigeria (TCN).

In his address at the meeting, Vice-President Kashim Shettima reiterated President Bola Tinubu’s commitment to repositioning and reforming BOA to drive the administration’s food security agenda.

“Let’s get very sound professionals with integrity to manage the bank. If we use it well, it’s going to be a tool for the transformation of our economy because agriculture is the key,” he said.

Shettima, who is also the NCP chairman, set up a committee to liaise with the special adviser to the president on energy and the federal ministry of power to provide a roadmap and reach out to stakeholders.