Tinubu Orders Bank of Agriculture to Pay ₦30bn Arrears to Agro-Dealers

President Bola Tinubu has directed the Bank of Agriculture (BOA) to clear outstanding arrears of ₦30 billion owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP).

A statement issued on Wednesday by the bank’s External Media Relations Lead, Judith Ekwebelem, confirmed that the directive followed the release of funds from the African Development Bank (AfDB). She explained that the move is aimed at strengthening support for farmers and stabilising Nigeria’s food supply chain.

The Federal Government has also designated BOA as the custodian of all agricultural financing programme funds. Ekwebelem noted that the directive marks a turning point for the sector, with BOA tasked to ensure smooth and timely disbursement to critical stakeholders in food production.

The bank pledged to execute the approved payment schedule with urgency, leveraging its electronic wallet system to complete payments to all compliant agro-dealers within 24 hours. Weekly progress updates will also be provided until the process is concluded.

According to Ekwebelem, the ₦30 billion represents the second tranche released by AfDB for the implementation of NAGS-AP, targeted at settling outstanding obligations from the 2024 dry and wet season programmes. She added that Finance Minister and Coordinating Minister of the Economy, Wale Edun, has directed that the process be treated with the highest priority.

The NAGS-AP Secretariat and BOA officially commenced the exercise on September 18, 2025, with the handover of beneficiary data.

BOA Managing Director and Chief Executive, Ayo Sotinrin, described the bank’s appointment as a historic responsibility. He said, “This is a truly defining moment for our 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. We are unlocking opportunities for farmers to move beyond subsistence farming into sustainable and profitable agribusiness.”

The bank added that only pre-qualified and registered agro-dealers and suppliers are eligible for payment under the scheme. Conditions include opening a BOA account, which is a mandatory step for claim processing. Registration is free and can be completed online.