President Bola Ahmed Tinubu has instructed the Bank of Agriculture (BOA) to immediately clear outstanding arrears amounting to ₦30 billion owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP). The directive follows the release of funds from the African Development Bank (AfDB), aimed at strengthening farmer support and stabilising Nigeria’s food production chain.
In a statement issued on Wednesday, Judith Ekwebelem, BOA’s External Media Relations Lead, confirmed that the Federal Government had formally designated the bank as custodian of all agricultural financing programme funds. She described the move as a major turning point for the sector, one designed to ensure the smooth and timely disbursement of funds to critical stakeholders in the food value chain.
According to her, BOA has pledged to execute the approved payment schedule with speed, using its electronic wallet system to pay all eligible agro-dealers within 24 hours of compliance. The bank will also provide weekly progress updates until the exercise is completed. Ekwebelem further explained that the ₦30bn represents the second tranche of AfDB funding for NAGS-AP, targeting arrears from both the 2024 dry and wet season programmes.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed that the disbursement process be treated with utmost priority. Following this, the NAGS-AP Secretariat and BOA began the settlement exercise on September 18, 2025, after the formal transfer of beneficiary data.
BOA Managing Director/Chief Executive, Ayo Sotinrin, described the assignment as a landmark responsibility. “This is a defining moment for Nigeria’s agricultural sector. It is not just about funds but about a strong commitment to ensuring our nation’s food security,” he said.
Sotinrin added that BOA is working closely with the NAGS-AP team to cut through bureaucratic delays and deliver payments directly to agro-dealers and suppliers. According to him, the initiative is key to helping farmers move from subsistence practices into sustainable and profitable agribusiness.
The bank also outlined conditions for eligible beneficiaries, including mandatory account opening with BOA to facilitate claims processing. Registration, Sotinrin noted, is free and can be completed online. He urged all pre-qualified agro-dealers and suppliers to comply without delay, warning that failure to do so could result in setbacks.
During the announcement, Sotinrin commended President Tinubu, AfDB, and other stakeholders for their commitment to strengthening agricultural financing. He assured that BOA would deliver on its mandate with transparency and urgency.
The directive aligns with Tinubu’s broader pledge to dismantle barriers slowing the agricultural sector. In a recent meeting with Brazilian President Luiz Inacio Lula da Silva, Tinubu acknowledged that bureaucracy had hindered Nigeria’s ability to fully harness its agricultural potential. He reiterated his commitment to reforms that will reposition the sector for competitiveness, enhance food sovereignty, and open up export opportunities.
With the payment order, government officials expect renewed confidence among agro-dealers and input suppliers, a smoother supply chain, and a stronger platform for achieving sustainable food security.
