The Bank of Agriculture (BOA) has completed a comprehensive operational overhaul to modernise its banking infrastructure, expand credit delivery to smallholder farmers, and establish transparent input distribution frameworks across Nigeria. 

Managing Director of the bank, Ayodeji Sotinrin, disclosed the development during an interactive session with journalists in Abuja on Thursday.

Sotinrin explained that the institution, operating under a full-for-profit model with a primary focus on developmental impact, executed a three-month restructuring plan anchored on internal operational overhaul, recapitalisation, and modern technology deployment. 

Supported by Ernst & Young’s technology unit and chief technology officers from eight major commercial banks in Nigeria, BOA built a modern digital banking ecosystem. 

The upgrade includes core banking software, internet and mobile banking platforms, custom debit cards, and multi-functional Smart POS terminals capable of opening accounts, verifying biometrics via National Identification Number (NIN) integration, and processing input disbursements at rural collection centres.

BOA introduced a digital e-wallet system that credits farmers directly with input allocations, such as fertiliser bags, insecticides, and seeds, which are subsequently redeemed at collection centres using Smart POS terminals. 

Given that smallholder farmers constitute roughly 70 per cent of the agricultural workforce, the bank is pivoting from individual micro-credit processing to a structured farmer aggregation framework using local aggregation companies. 

Additionally, the bank secured a N250 billion allocation from the Federal Government for the rollout of its Renewable Small Loan Support and Value Chain Program, currently undergoing pilot implementation, while introducing a Guaranteed Minimum Price (GMP) framework to absorb excess grain supply during harvests and release stock during shortages to stabilise market prices.

Source: Business Day