Tinubu Orders BOA to Settle NAGS-AP Arrears, Releases N30bn AfDB Fund

President Bola Ahmed Tinubu has directed the Bank of Agriculture (BOA) to immediately clear outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP). The order follows the release of N30 billion from the African Development Bank (AfDB) for the scheme.

The move, aimed at boosting support for farmers and strengthening Nigeria’s food supply chain, also designates BOA as the custodian of all agricultural financing programme funds.

In a statement, BOA’s External Media Relations Lead, Judith Ekwebelem, confirmed that the N30 billion represents the second tranche from AfDB and will cover arrears from both the 2024 dry and wet season programmes.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, instructed that the payments be treated as a “highest priority.” The NAGS-AP Secretariat and BOA commenced the exercise on September 18 with the formal handover of beneficiary data.

BOA Managing Director/Chief Executive, Ayo Sotinrin, described the directive as a “defining moment” for Nigeria’s agricultural sector. He said:

“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, enabling farmers to transition from subsistence to sustainable agribusiness.”

BOA outlined that only pre-qualified and registered agro-dealers and suppliers would be eligible for payments. Beneficiaries are required to open a BOA account, a free and mandatory step for claim processing. Payments will be executed urgently via the bank’s electronic wallet system, ensuring verified beneficiaries receive funds within 24 hours. Weekly progress updates will be provided until completion.

Sotinrin urged all beneficiaries to comply promptly, warning that delays in meeting requirements could affect payment processing. BOA expressed gratitude to President Tinubu and relevant ministers, describing the assignment as crucial to national food security and agricultural transformation.