The Bank of Agriculture (BOA) says it has begun recovering unpaid loans from farmers across the country, working with several federal agencies, and has already recovered about 35 per cent of outstanding debts.
The recovery effort, according to the bank’s Managing Director and Chief Executive Officer, Ayo Sotirin, is part of a broader reform agenda aimed at restoring financial discipline within the institution and repositioning it as a stronger development finance bank for Nigeria’s agricultural sector.
Sotirin said loan recovery became a priority shortly after he assumed office in May 2025, as the bank moved to address years of accumulated non-performing loans that weakened its balance sheet and limited its ability to finance farmers and agribusinesses.
“Loan recovery became a top priority immediately after my appointment in May 2025,” he said.
“We launched aggressive recovery campaigns nationwide, publishing lists of chronic defaulters, issuing repayment notices and collaborating with credit bureaus and regulatory agencies.”
According to him, the bank has already recovered more than a third of the debts owed by borrowers.
“So far, we have recovered over 35 per cent of non-performing loans,” Sotirin said.
The BOA chief explained that many of the debts were legacy loans accumulated over several years, with a large portion linked to government-backed intervention programmes.
He noted that legacy impaired loans account for about 16 per cent of the bank’s portfolio, while facilities connected to the Anchor Borrowers’ Programme represent nearly 60 per cent of its non-performing loan exposure.
To accelerate recovery, the bank is working with key financial regulators and security agencies, including the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), the Department of State Services (DSS), and the Independent Corrupt Practices Commission (ICPC).
“We are working closely with the Central Bank of Nigeria, the EFCC, the ICPC and the DSS to recover these funds,” Sotirin said.
The collaboration with these institutions, he said, is designed to strengthen enforcement, improve accountability and ensure that borrowers meet their repayment obligations.
The BOA boss said the bank aims to significantly reduce the level of bad loans on its books in the coming years as part of efforts to stabilise its financial position and expand lending to the agricultural sector.
“Our target is to reduce legacy NPLs to below five per cent, ensuring a clean and healthy balance sheet that supports sustainable lending growth,” he said.
The recovery drive forms part of a wider reform programme being implemented at the bank, which includes restructuring operations, recapitalising the institution and modernising its systems.
Sotirin explained that when he assumed office, the bank faced several structural challenges, including outdated infrastructure, weak technology systems and low staff morale.
“The Bank of Agriculture was originally established as a development finance institution to drive agricultural growth,” he said.
“However, for nearly two decades, the bank suffered neglect. Staff salaries became extremely low, infrastructure deteriorated, technology systems became obsolete, and the institution gradually lost relevance.”
According to him, successive government interventions in agriculture were often implemented through parallel programmes outside the BOA, which weakened the institution’s central role in agricultural financing.
“As a result, the bank accumulated massive non-performing loans and struggled operationally,” he said.
The current administration led by Bola Ahmed Tinubu has since approved a ₦1.5 trillion recapitalisation plan for the bank as part of efforts to strengthen agricultural financing and boost food security.
Sotirin said the recapitalisation initiative demonstrates the government’s commitment to repositioning agriculture as a key driver of economic diversification and poverty reduction.
“The federal government has approved a ₦1.5 trillion recapitalisation plan for the BOA, translating to over $1.1 billion,” he said.
“This decision reflects the government’s recognition of agriculture as a critical tool for lifting Nigerians out of multidimensional poverty.”
He added that beyond loan recovery and recapitalisation, the bank is implementing reforms aimed at transforming it into a modern, technology-driven development finance institution capable of supporting farmers, agribusinesses and exporters across the agricultural value chain.
“These reforms are designed to create a resilient, transparent and impactful institution,” Sotirin said.
The BOA chief stressed that improving loan repayment culture among farmers and agribusinesses will be essential for sustaining agricultural financing and ensuring that intervention funds continue to reach those who need them.
“Ensuring that loans are repaid allows the bank to recycle funds and extend credit to more farmers across the country,” he said.
