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FG to Restructure, Recapitalise BoA With N500bn

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  • FG to Restructure, Recapitalise BoA With N500bn

The Federal Government has set up a 21-man steering committee to restructure and recapitalise the Bank of Agriculture.

The committee would commence the restructuring with N500bn and work within the next three to one month to actualise its goal.

Inaugurating the committee in Abuja on Monday, Vice President Yemi Osinbajo, urged the committee to work within a record time to actualise the goal.

He said the restructuring was aimed at revitalising the operations of the Bank to make it more responsive to its mandate.

Osinbajo, represented by the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, said the restructuring, would strengthen the bank as a platform for providing loans to Small and Medium Enterprise farmers and cooperatives among others.

He said the approach was a pre-privatisation strategy preferred by the Federal Government to pave way for the injection of financial and other requisite resources into the Bank.

He said, “It is noteworthy that in its over 20 years of existence, the BoA has faced myriad of challenges which include, poor funding, poor stakeholder buy in, particularly Federal Government agencies and erosion of stakeholders funds.”

Ogbeh, also the Chairman of the committee, said the committee would commence the restructuring with N500bn and work within the next three to one month to actualise its goal.

The minister said the committee was expected to give the Bank a face-lift, look into the issues of staffing, electronic improvement, work in every community nationwide, provide credits to SMEs and to farmers small or big.

Ogbeh said the Central Bank of Nigeria would hand over the Anchor Borrowers Scheme to the Bank after the restructuring to effectively finance agricultural projects.

He said, “There will be a better run financed BOA so that the interest rate will be easily accommodated by farmers. We will recover some of the credits owed by farmers because some of them have offered to pay.”

The CBN Governor and a member of the committee, Mr Godwin Emefiele, described its Anchor Borrowers Programme which started in 2016 as `a success’.

He expressed optimism that the committee would work to ensure that the BOA achieved its aims and objectives in a very short time.

According to him, the loans that are currently given to farmers through the Anchor Borrowers Scheme is in a single digit

“The Federal Ministry of Agriculture is asking us to reduce the interest rate to about nine per cent to enable farmers buy inputs, go to the farm, make a living and feed the country,’’ Emefiele said.

The Managing Director of BOA, Prof. Danbala Danju, commended the Federal Government for its initiative to restructure the Bank.

He expressed regret over the bad and non- repayment attitude of farmers after collecting funds from the Bank.

Danju said the Bank was targeting single digit interest rate on loans to farmers by the end of the restructuring.

The managing director said the Bank would work with the private sector and the international development agencies to actualise their set target

He said, “The Bank needs to be recapitalised to energise the agriculture sector in line with best practices all over the world.

“We expect a restructuring plan that will look at our operating model, human resources and the entire business plan so that agriculture will be properly financed in Nigeria.

“Agriculture has been under-funded and the key challenge is how to source the fund so that we can assist farmers.

“The key challenge now is how we can reconstitute ourselves to properly identify farmers and ensure that when farmers are given loans and support, they pay back.”

The committee is made up of the Ministers of Finance, Industry, Trade and Investment, Planning and representatives from the BOA, ministry of Justice, Bureau of Public Enterprise, among others.

The nine members known as Project Delivery Team, would also assist the committee to deliver on the restructuring mandate.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Finance Minister Edun Lauds Nigerians for Enduring Economic Reforms Amidst Hardships

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The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has commended Nigerians for enduring the hardships caused by the economic reforms of President Bola Tinubu.

Minister Edun, who spoke on Thursday during an interactive session with the Senate Committee on Finance at the National Assembly in Abuja, highlighted that these reforms have begun to yield positive results.

Edun explained that two critical reforms initiated by the Tinubu government are now at the stage of delivering results.

He added that these reforms will restore the fiscal viability of the country.

“The two critical reforms on the market-based price of Premium Motor Spirit (PMS) and foreign exchange are now at the stage of delivering results, which will, by extension, restore the viability of the nation’s economy through fiscal restoration.”

“These two pillars of the economic reforms, which are now taking positive shape, portend additional revenue for the government, recovery of NNPCL’s finances, and a strong foundation for growing the economy, attracting investment, and creating jobs.”

“I think we need to commend Nigerians for staying the course to this stage of realizing these benefits,” he stated.

The Chairman of the Committee, Senator Sani Musa, said that the session was important as it gave stakeholders the opportunity to deliberate on pressing issues.

He said, “Today, we gather to deliberate on pressing matters related to the sale of crude oil to domestic refineries in Nigeria in naira, its implications on the approved Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2024-2026, and what we should expect for 2025-2027.”

The committee reaffirmed the need for accountability in the NNPC, stating, “Additionally, we will examine shortfalls in NNPCL revenue remittances, focusing on key areas such as foreign and domestic excess crude accounts, the signature bonus accounts, NNPCL cash call accounts, and any outstanding or remitted revenue linked to under-recoveries.”

“This meeting underscores our commitment to transparency, accountability, and responsible management of our national resources.”

Musa concluded that with relevant collaboration, solutions can be identified.

He stated, “I am confident that with the collaboration of the Ministry of Finance under the able leadership of the Coordinating Minister of the Economy, the Office of the Accountant General of the Federation, the Central Bank of Nigeria, the Revenue Mobilization and Fiscal Commission, and other critical stakeholders present here, we will identify solutions and ensure that due processes are upheld for the benefit of our economy and the Nigerian people.”

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President Tinubu Approves Concrete Redesign for Abuja-Kaduna Road Amid Contract Termination

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The Federal Government has announced plans to address the difficulties faced by road users on the Abuja-Kaduna-Zaria-Kano road with the redesign of the dual carriageway.

This announcement was made by the Minister of Works, David Umahi via a statement on Wednesday.

The Ministry revealed that the 127 kilometers project has been approved by President Bola Tinubu.

This development comes two days after the Ministry of Works announced the termination of its contract with Julius Berger for the Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway project in FCT, Kaduna, and Kano States.

Investors King understands that the contract for the rehabilitation of the road was awarded to Messrs Julius Berger (Nig.) Plc on December 20, 2017.

The project, initially valued at N155.7 billion, with a 36-month completion period was further categorized into three sections.

However, only Section II (Kaduna-Zaria) has been completed and partially handed over.

Section III (Zaria-Kano) is partially finished while Section I remains in a severely deteriorated state.

A statement from the Ministry explained that the decision to terminate the contract with Berger was based on non-compliance with reviewed cost, scope, and terms, stoppage of work, and refusal to remobilise to site.

The ministry on Wednesday, November 6, confirmed that Section I has been redesigned and re-scoped.

The statement reads, “The President, His Excellency, Bola Ahmed Tinubu, GCFR has approved that the remaining 127 kilometres of the Rehabilitation of Abuja – Kaduna – Zaria – Kano Dual Carriageway, Section I (Abuja – Kaduna) be redesigned using continuously reinforced concrete pavement (CRCP) instead of the present asphaltic one.”  

“The contract, divided into three (3) sections, was awarded to Messrs Julius Berger (Nig.) PLC on 20th December 2017 at an initial sum of N155, 748,178,425.50 billion (one hundred and fifty-five billion, seven hundred and forty-eight million, one hundred and seventy-eight thousand, four hundred and twenty-five naira, fifty kobo) with a completion period of thirty-six (36) months.” 

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Tax Expert Warns Tinubu: VAT, PAYE Hikes Will Deepen Hardship for Nigerians

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Due to Nigeria’s economic situation, tax expert Adebisi Oderinde has urged President Bola Ahmed Tinubu to halt plans to increase the VAT and Pay-As-You-Earn (PAYE) tax rates.

Oderinde, who is also the CEO of AOC-Adebisi Oderinde & Co, made the statement during the inauguration of the company’s Head Office in the Kara area of Ogun State.

He said the country’s economic conditions are challenging and particularly unfavorable for SMEs and warned that implementing tax reform could destabilize many small businesses as inflation has already eroded purchasing power in Nigeria.

With over 28 years of experience as a tax consultant, Oderinde noted that new tax reforms would likely worsen hardship across the country.

“My advice is to make hay while the sun shines, as the journey of a thousand miles begins with a single step, and slow and steady wins the race. The country is hard! As a tax practitioner, I continue to pray for our President, but he must heed the advice of elders, especially when it concerns tax reform,” he said.

“This is not the right time to reform any tax, nor to adjust rates. Nigerians’ purchasing power is very low. While some may think of VAT reform as beneficial, it would have a negative impact, especially on Lagos State. One part of the reform aims to cancel the consumption tax, which would hit Lagos hard, as the state earns more from consumption tax than any other state in the federation,” he added.

Oderinde further advised northern Nigeria not to support the proposed policy, warning it could disproportionately affect the region.

“They also want to increase PAYE, and recent data from the NBS in 2023 shows that the total IGR from the 36 states plus the FCT is about N2.4tn, with PAYE accounting for about 63%. If PAYE is raised, it will impact many states significantly. Instead of focusing on VAT, the northern states should consider that an increase in PAYE would affect them even more than VAT,” he explained.

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