BOA MD: N37bn Loans to Farmers, SMEs in Default

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The Managing Director and Chief Executive Officer of the Bank of Agriculture (BOA), Kabir Mohammed Adamu has said N37,449,480,101.02 equivalent to 78.4 percent of the bank’s current loans portfolio is in default.

Speaking yesterday when he received the Senate Committee on Agriculture led by its chairman, Senator Abdullahi Adamu on an oversight function he said that the bank’s current loan portfolio is N47,212,810,354.05 to Micro, SMEs and large scale both on agricultural and nonagricultural beneficiaries out of which the sum of N10,760,166,960.90 has been repaid.

According to him, the bank has been a special purpose vehicle towards the development and execution of the Federal Government Agricultural Agenda but lamented the lack of loan repayment from organizations, groups and farmers.

Other challenges he identified include, failure of the shareholders, Federal Ministry of Finance Incorporated and Central Bank of Nigeria (CBN) to pay their equity contributions which he said amount to N18,221,252,456.00.

Weak capital base, lack of lending resources, information technology, staff related challenges, old and dilapidated structures and inability of tenants to pay their outstanding rents, poor office ambiance and High nonperforming loans were other challenges he identified.

In view of the challenges, the BOA boss prayed the committee to help make a case to President Muhammadu Buhari to provide funding on sustainable basis coupled with the need to put the Bank on the path of growth, allow the bank to manage all Agricultural Interventions and other Natural Resources Funds especially rice levy, wheat levy, sugar levy among others.

Responding, the Senate Committee Chairman, Senator Adamu assured of ensuring that the needful is done to ensure that the bank is assisted in any way possible to enable her perform optimally and efficiently.