The National Council on Privatisation, NCP, has announced that it is aiming to merge the Central Bank of Nigeria’s NIRSAL Microfinance Ltd with the Bank of Agriculture.
The Council disclosed this in a statement on Wednesday, noting that it also plans to inject new capital into the institutions to rejuvenate them following the merger.
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These decisions were among the recommendations of NCP’s Committeebon BOA, which were revealed during a Council meeting at the Presidential Villa in Abuja.
Vice President Kashim Shettima, who chaired the meeting, emphasized President Bola Tinubu’s dedication to restructuring and improving the Bank of Agriculture to advance the administration’s food security agenda.
The vice president 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.,”
On his part, Wale Edun, the Minister of Finance, explained that the Council’s decision was based on the identified challenges and the urgent need to address the bank’s issues.
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.
“This will increase the capital adequacy to raise funds from institutional investors.”