President Bola Ahmed Tinubu has directed the Bank of Agriculture (BOA) to clear outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP).
This order follows the release of ₦30 billion from the African Development Bank (AfDB) to support the programme.
Government officials say it is a fast-tracking support for farmers, stabilising the nation’s food supply chain, and strengthening agricultural productivity.
Under the directive, the BOA will serve as custodian of all agricultural financing programme funds.
In a statement, BOA’s External Media Relations Lead, Judith Ekwebelem, confirmed that the ₦30 billion represents the second tranche of AfDB funding for the NAGS-AP.
She noted that the funds will cover arrears from both the 2024 dry and wet season farming programmes.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, instructed that payments to beneficiaries be given the “highest priority.
”According to BOA, the payment process began on September 18, following the handover of verified beneficiary data from the NAGS-AP Secretariat.
BOA’s Managing Director and Chief Executive, Ayo Sotinrin, described the development as a defining moment for Nigeria’s 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,” he said.
Sotinrin added that the funds will help farmers move beyond subsistence farming into sustainable and profitable agribusiness.
To qualify for payment, beneficiaries must have been pre-registered under NAGS-AP before 2025, received at least one prior payment, and activated an account with BOA. Account opening is mandatory, free, and available online.
The bank pledged to disburse verified payments within 24 hours using its electronic wallet system, committing to issue weekly progress updates until all arrears are cleared.
Source: TribuneOnline
Image Credit: Punch News
