Nigeria’s agricultural future is once again being tied to a familiar institution—the Bank of Agriculture (BOA). With the Federal Government’s renewed commitment, including a ₦1.5 trillion recapitalisation approved by Bola Tinubu and an additional ₦200 billion in intervention funding, expectations are high. Officials describe this as the boldest agricultural financing effort in the nation’s history.
Yet, beneath the optimism lies a troubling question: can BOA truly deliver for the millions of farmers it is meant to serve?
Access Still a Major Barrier
For many farmers, particularly those in rural communities, access to BOA remains limited. According to Moukhtar Muhammad of the Coalition of Farmers Associations of Nigeria, the reality on the ground is stark. Farmers struggle to reach BOA branches, and delays in disbursement often mean missing critical planting windows.
In agriculture, timing is everything. When funds, fertilisers, or seeds arrive late, yields drop—and so does farmer confidence in government programmes.
The Credit Problem: Too Small, Too Slow
Even when loans are accessible, their impact is often minimal. Felix Ekol, an agribusiness investor, points out that loans ranging from ₦50,000 to ₦250,000 are grossly inadequate in today’s inflationary climate.
What could barely support one acre years ago now struggles to cover basic land preparation and labour. Farmers are left either underfunded or forced to seek additional loans—creating a cycle of debt rather than growth.
Repayment structures add another layer of difficulty. Agriculture is seasonal, but loan timelines often ignore this reality. Farmers frequently repay from unrelated income sources, undermining the very purpose of agricultural financing.
Structural Flaws Undermining Trust
Beyond funding size and access, BOA’s operational model raises deeper concerns. Group lending schemes, designed to reduce risk, have instead discouraged participation. When a few members default, entire groups are penalised, blacklisted, or denied future access.
This system punishes discipline and honesty, pushing serious farmers away from formal financing channels.
Additionally, experts like Austine Maduka argue that BOA’s governance structure lacks adequate representation from farmers and agribusiness stakeholders. Without their voices at the table, policies risk being disconnected from on-the-ground realities.
Policy Direction: Centralisation or Confusion?
The Federal Government’s decision to channel agricultural interventions primarily through BOA has also sparked debate. While centralisation may improve oversight, critics question whether BOA alone has the institutional capacity to handle multiple large-scale programmes effectively.
There is also growing concern about the apparent sidelining of other financial institutions with agricultural mandates. Observers are asking why collaboration across institutions is limited, especially when the stakes—national food security—are so high.
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### Reform or Repeat?
BOA’s leadership, including Managing Director Ayodeji Oludare Sotinrin, has pledged digital transformation and smarter capital deployment. These reforms aim to improve transparency, speed, and reach.
But reforms on paper must translate into real impact in farms and rural communities.
Nigeria does not lack funding commitments—it lacks effective delivery. For BOA to become a true catalyst for food security and rural prosperity, several issues must be addressed:
* Expand rural access through more branches and digital inclusion
* Align loan structures with agricultural cycles
* Increase loan sizes to reflect economic realities
* Reform group lending policies
* Include farmers and agribusiness stakeholders in governance
Until these structural challenges are resolved, the risk remains that billions of naira will circulate within the system—without ever reaching the hands that feed the nation.
The question is no longer about how much is being invested, but whether the system is built to ensure farmers actually benefit.
