President Bola Tinubu has directed the Bank of Agriculture to clear outstanding arrears of N30bn owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket.
According to a statement issued on Wednesday by the bank’s External Media Relations Lead, Judith Ekwebelem, the directive followed the release of funds from the African Development Bank.
The bank explained that the move was aimed at strengthening support for farmers and stabilising the country’s food supply chain.
The Federal Government has also designated BOA as the custodian of all agricultural financing programme funds.
Ekwebelem said, “The move (the directive ) is seen as a turning point for the sector, with BOA tasked to ensure smooth and timely disbursement of funds to critical stakeholders in food production.
“The bank has, however, pledged to execute the approved payment schedule with urgency using its robust electronic wallet system to achieve payment to all complying agro-dealers within 24 hours, while also providing weekly progress updates until completion.”
She noted that the N30 billion represented the second tranche released by AfDB for the implementation of NAGS-AP, saying, “the funds are targeted at settling outstanding obligations from the 2024 dry and wet season programmes.
“Minister of Finance and Coordinating Minister of the Economy, Wale Edun, O.F.R., directed that the process be treated with the highest priority.”
“Accordingly, the NAGS-AP Secretariat and BOA formally kicked off the exercise on 18th September 2025 with the handover of beneficiary data.”
According to the statement, the Managing Director/Chief Executive of BOA, Ayo Sotinrin, described the appointment as a historic responsibility, saying, “This is a truly defining moment for our agricultural sector. This is more than just a fund; it is a bold commitment to ensuring our nation’s food security.
“By working hand-in-hand with the NAGS-AP team, we are cutting through bureaucratic delays to get payments directly to agro-dealers and suppliers.
“We are unlocking opportunities for farmers to move beyond subsistence farming into sustainable and profitable agribusiness.”
It added that BOA had outlined conditions for pre-qualified and registered agro-dealers and suppliers eligible for payment under the scheme, which include opening a BOA account, a mandatory step for claim processing.
Registration is free and can be completed online.
Sotinrin, who lauded the President and other stakeholders over the funds, urged all beneficiaries to comply without delay, warning that failure to do so could result in processing setbacks.
Tinubu, during a recent meeting with the Brazilian President, Luiz Inacio Lula Da Silva, has expressed assurance to remove all bottlenecks hindering the realisation of the agricultural sector’s potential to enable food sovereignty and export.
The President, in a bilateral meeting held with the Brazilian President, noted that bureaucracy contributes to delays in realising the agricultural sector’s potential.
He informed the Brazilian leader and delegation that Nigeria was already undergoing reforms to reposition the economy for global competitiveness, particularly in agriculture, where it already had a competitive advantage.