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).
According to a statement on Wednesday by the bank’s External Media Relations Lead, Judith Ekwebelem, the directive follows the release of funds from the African Development Bank (AfDB). The move, she noted, is aimed at stabilising Nigeria’s food supply chain and strengthening support for farmers.
The Federal Government has also designated BOA as the custodian of all agricultural financing programme funds.
“The move is seen as a turning point for the sector, with BOA tasked to ensure smooth and timely disbursement of funds to critical stakeholders in food production,” Ekwebelem said.
BOA pledged to execute the approved payment schedule with urgency, leveraging its electronic wallet system to complete payments to compliant agro-dealers within 24 hours, while providing weekly progress updates until the exercise is concluded.
The ₦30 billion represents the second tranche released by AfDB for the implementation of NAGS-AP, specifically to settle outstanding obligations from the 2024 dry and wet season programmes.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed that the payment process be treated as a top priority. The NAGS-AP Secretariat and BOA formally began the exercise on September 18, 2025, with the handover of beneficiary data.
BOA Managing Director and Chief Executive, Ayo Sotinrin, described the directive as a “historic responsibility” for the 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,” Sotinrin stated.
He added that pre-qualified and registered agro-dealers must open BOA accounts to process claims, stressing that registration is free and available online.
President Tinubu recently reaffirmed his commitment to removing bottlenecks hindering Nigeria’s agricultural transformation during a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva. He emphasised that Nigeria’s ongoing economic reforms are designed to reposition agriculture as a driver of food sovereignty, export growth, and global competitiveness.
