The Federal Ministry of Agriculture says plans are in motion for farmers to own 30 percent shares in the Bank of Agriculture (BOA).
Speaking during the signing of an e-banking agreement between the Bank of Agriculture (BOA) and SunTrust Bank, minister of Agriculture, Audu Ogbeh, regrets BOA has been in difficulty of the years while expressing hopes of achieving five percent rates for farmers
“30 percent of BOA will be owned by farmers which will eventually make it to be referred to as Farmers Bank like the one in China. I look forward to achieving five percent interest rate for farmers. The current interest rate is rather unfriendly and disincentive.” Ogbeh says
The e-banking agreement between the Bank of Agriculture (BOA) and SunTrust Bank is part of efforts at revitalizing agriculture as alternative mainstay of the economy. The agreement will function with SunTrust Bank having access to over 1 million farmers who deal with the Bank of Agriculture. SunTrust will also site its ATMs at BOA’s branches across the country.
Ogbeh describes the move as “the landmark deal that will change the face of farming in the country.”
“We have been trying to set up IT services at the BOA but it has been difficult. We hope that with your backing, the services will eventually come to fruition.” He says
According to the CEO of SunTrust Bank Nigeria limited, Muhammad Jibrin, the move will simplify Bank of Agriculture’s services to its farmer customers across its 140 branches in Nigeria.
“We will also provide training support to the BOA staff and at the end of the day, it will be a mutually benefiting agreement to all parties.”
Bank of Agriculture’s chief executive officer, Kabiru Adamu, also expressed optimism in the agreement revolutionizing agriculture in the country, saying both banks have agreed to bring together their mutually unique capabilities and experiences to enable BOA serve its customers to facilitate quicker access for the unbanked farmers.
Bank of Agriculture Limited is the nation’s foremost agricultural and rural development finance institution.
The agreement may be born out of the Central Bank of Nigeria (CBN) recent issuance of a new target for Deposit Money Banks and all Microfinance Banks in the country towards achieving the 80 percent financial inclusion target for all adult population in Nigeria by 2020.
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