In recent years, the Bank of Agriculture (BOA) has faced challenges leading to a decline in agricultural productivity in Nigeria. Analysts attribute its failures to poor capitalization, governance issues, and the Central Bank of Nigeria’s encroachment on its functions.
Key Points:
- Stakeholders blame BOA for current food crisis
- CBN accused of taking over BOA’s functions
- Urgent need for recapitalization and restructuring
The BOA was initially established to provide financial support to farmers and enhance the agricultural sector’s growth. However, the bank’s recent inactivity has resulted in decreased agricultural productivity and impacts on food security in the country.
Despite past successes in job creation, capacity building, and food security, the BOA’s current state has left many farmers without access to credit or needed support. The involvement of the CBN, while intended to strengthen the BOA, has led to operational challenges and a lack of impact.
Stakeholders emphasize the urgent need for the government to revitalize the BOA, enhance its management, and prioritize agricultural financing. The bank’s role in supporting smallholder farmers and driving modernization in agriculture is crucial for Nigeria’s economic development and food security.
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