The Federal Government has initiated a bold financial reset to transform Nigeria’s agricultural sector, launching a comprehensive debt recovery campaign to reclaim over $20 billion in unpaid loans owed to the Bank of Agriculture (BoA).
Ayo Sotinrin, the newly appointed Managing Director and CEO of the BoA, made this announcement during a media briefing at the National Youth Dialogue on Inclusive Food Systems, held in Abuja. The event was organized by ActionAid Nigeria in partnership with the Nigerian Senate, with support from GIZ.
The debt recovery strategy, dubbed “Operation Recover All,” aims to recover outstanding loan facilities by engaging directly with defaulters. “We are issuing formal notices to all clients with unsettled loans. Our appeal is simple repay what you owe the bank,” Sotinrin said. He further hinted that borrowers who clear their debts may become eligible for fresh financing under revised conditions.
This push to reclaim overdue funds is a critical pillar of the bank’s broader revitalization mission, which includes a major capital injection supported by President Bola Ahmed Tinubu’s administration. Sotinrin confirmed that beyond the recapitalization, the BoA is eyeing international funding opportunities to further expand its lending capabilities.
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“We intend to strategically grow our balance sheet by attracting global capital, which will allow us to invest more deeply across various agricultural value chains,” he explained.
A key focus of the bank’s transformation is to support millions of smallholder farmers between 40 to 70 million Nigerians by providing timely financial support, modern tools, and access to digital platforms. The overarching goal is to shift agriculture from subsistence to a business-driven model, capable of producing higher yields and contributing significantly to food security.
BoA’s ambitious targets include raising crop yields from a national average of one ton per hectare to nine tons per hectare, a move expected to ease food inflation and boost domestic food production.
Digital transformation also sits at the heart of the bank’s restructuring plan. According to Sotinrin, the bank is working to automate processes to ensure faster and more efficient access to financing. “Technology will be a key enabler in ensuring transparency, accessibility, and speed for all stakeholders,” he noted.
While the initial appeal for repayment is cooperative in nature, the BoA chief warned that enforcement measures including potential sanctions will follow for those who fail to meet their obligations.
Ultimately, the recovery of these outstanding debts is seen as essential to restoring the financial health and lending capacity of the BoA. With strong federal backing and a renewed strategic focus, the institution is poised to play a central role in achieving national agricultural reform and food security goals.
