The Nigerian federal government has established new performance targets for the board of the Bank of Agriculture (BOA), instructing the state-owned lender to prioritize credit expansion and improve loan recovery rates.
The directive, issued on Friday, signals a shift toward stricter operational discipline at the institution, which plays a central role in financing the country’s agricultural sector.
The move comes as the BOA is actively engaged in distributing fertilizers, maize seeds, and crop protection products to approximately 500,000 smallholder farmers under the government’s Renewed Hope Smallholder Support program.
By linking board performance to lending and recovery metrics, authorities aim to ensure that the bank’s outreach efforts are matched by financial sustainability and reduced non-performing assets.
This development aligns with broader efforts by the Nigerian government to stabilize its sovereign financing profile.
The government has recently initiated the process to return to global debt markets by seeking financial advisers for a new Eurobond issuance, marking a significant step in its sovereign debt strategy.