BOA, NOA part­ner to re­duce non-per­form­ing loans

Daily Trust - - BUSINESS - By Lat­i­fat Opoola

The Bank of Agriculture (BOA) and the Na­tional Ori­en­ta­tion Agency (NOA) have struck a part­ner­ship to deepen pub­lic sen­si­ti­za­tion on the An­chor Bor­row­ers pol­icy for bet­ter re­sults in the sec­tor.

This was stated yes­ter­day when the DG of NOA, Garba Abari, paid the bank a work­ing visit in Abuja, a state­ment from the NOA said.

Man­ag­ing Direc­tor of the bank, Kabir Adamu, ob­served that the pro­gramme, which tar­gets small holder farm­ers with agri­cul­tural loan and in­puts, was con­fronted with non-per­form­ing loans which he as­cribed to poor un­der­stand­ing of the pro­gramme by farm­ers.

He stressed that the loans to farm­ers were not gifts, hence the need for them to re­pay in or­der to fa­cil­i­tate ac­cess by other farm­ers.

He, how­ever noted that BOA’s non-per­form­ing loans were be­low 10 per­cent, bet­ter than the Cen­tral Bank of Nigeria’s stan­dard of 70 per­cent.

He also dis­closed that the bank hopes to reg­is­ter 15 mil­lion farm­ers in the next two years and was there­fore part­ner­ing with rel­e­vant agen­cies to open branches in all lo­cal gov­ern­ment ar­eas to en­sure it meets the tar­get.

He ap­pealed to cor­po­rate Nigeria to part­ner with the bank in the area of fund­ing in line with global best prac­tices and in the spirit of pa­tri­o­tism.

“We want to col­lab­o­rate with NOA to sen­si­tize farm­ers that loans taken should not be con­strued as share of the na­tional cake, he said.

Kabir there­fore told the DG of NOA that the bank wants to rely on NOA’s pres­ence across the coun­try to pro­mote its ac­tiv­i­ties and seek un­der­stand­ing of the masses.

Direc­tor Gen­eral of NOA, Dr. Garba Abari, said gov­ern­ment had shown the nec­es­sary po­lit­i­cal will to re­po­si­tion agriculture through its pol­icy di­rec­tion in the sec­tor, adding that both in­sti­tu­tions have the rel­e­vant plat­forms to re­po­si­tion agriculture and make wide­spread im­pact in the coun­try.

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