BOA, NOA partner to reduce non-performing loans
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.