Reforms: NCP mulls BOA-NIRSAL merger

The National Council on Privatisation (NCP) has received key recommendations from its committee on the Bank of Agriculture (BOA), including a proposed merger with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd and a fresh capital injection to revitalise the bank.

Addressing the second NCP meeting of 2024 at the Presidential Villa yesterday, Vice Presidentr Kashim Shettima reiterated President Bola Tinubu’s commitment to repositioning and reforming BOA to drive the administration’s food security agenda.

He said:  “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.”

Presenting the committee’s report, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who doubles as NCP Vice-Chairman, said the Council’s decision was informed by the challenges identified and the need for urgent resolution of the issues confronting the bank.

Edun outlined the major recommendations, including “The immediate reconstitution of the Board of Directors of the bank to enhance corporate governance” and “a merger of BOA with the CBN’s NIRSAL Microfinance Ltd.”

He also highlighted the proposal to “Cede National Agricultural Land Development Authority (NALDA) land titles to BOA so that it reflects in its balance sheet, thus increasing its capital adequacy for the purpose of raising funds from institutional investors.”

In a move to bring transparency and efficiency to the nation’s energy sector, the NCP also noted the proposal seeking approval for the establishment of an independent system operator from the Transmission Company of Nigeria (TCN).

NCP Chairman, Vice President Shettima, set up a committee to liaise with the Special Adviser to the President on Energy and the Federal Ministry of Power to provide a roadmap and reach out to stakeholders.

The committee is chaired by Mr. Oye Hassan-Odukale, Technical Committee Chairman of NCP.