President Tinubu’s Government has proposed the Bank of Agriculture and CBN’s NISRAL merger.
NaijaOnPoint Nigeria reports that the National Council on Privatisation (NCP) on Wednesday, announced it is considering merging the Bank of Agriculture with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd.
The council also plans to inject new capital into the institutions to rejuvenate them following the merger.
These decisions were among the recommendations from NCP’s Committee on BOA, which were revealed during a council meeting at the Presidential Villa in Abuja.
Vice President Kashim Shettima, who chaired the meeting, emphasized President Bola Tinubu’s dedication to restructuring and improving the Bank of Agriculture to advance the administration’s food security agenda.
According to the vice president, “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.,”
During the presentation of the committee’s report, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, explained that the council’s decision was based on the identified challenges and the urgent need to address the issues facing the bank.
Mr. Edun, who also serves as the Vice-Chairman of the NCP, highlighted key recommendations, such as the immediate reconstitution of the Bank’s Board of Directors to improve corporate governance.
The Minister stated, “cede National Agricultural Land Development Authority (NALDA) land titles to BOA so that it would reflect in its Balance Sheet.”
“This will increase the capital adequacy for the purpose of raising funds from institutional investors,”
NaijaOnPoint Nigeria reports that the minister recognized the importance of financially reinforcing the bank and emphasized the necessity of substantial capital contributions from its shareholders as a vital progression.
Regarding the energy sector, Mr. Edun mentioned that the NCP suggested the creation of an independent system operator for the Transmission Company of Nigeria (TCN) to enhance transparency and efficiency in the sector.