The Central Bank of Nigeria’s NIRSAL Microfinance Ltd. and the Bank of Agriculture are potentially combining, according to a statement made by the National Council on Privatization (NCP) on Wednesday.
In an effort to revitalize the institutions after the merger, the council also intends to provide fresh funding to them.
During a council meeting at the Presidential Villa in Abuja, the recommendations from the NCP’s Committee on BOA were disclosed, including these conclusions.
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In order to further the administration’s goal of ensuring food security, Vice President Kashim Shettima, who presided over the meeting, underlined President Bola Tinubu’s commitment to reorganizing and strengthening the Bank of Agriculture.
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.,”
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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.”
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“This will increase the capital adequacy for the purpose of raising funds from institutional investors,”
Establishment of a system operator for the TCN
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.
