President Bola Tinubu has directed the Bank of Agriculture (BOA) to settle outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP), following the release of N30 billion from the African Development Bank (AfDB).
The directive, aimed at fast-tracking support for farmers and stabilising Nigeria’s food supply chain, also appoints BOA as custodian of all agricultural financing programme funds.
According to the external media relations lead for BOA, Judith Ekwebelem, in a statement, the move will serve as a turning point for the sector, with BOA tasked to ensure smooth and timely disbursement of funds to critical stakeholders in food production.
The bank, however, pledged to execute the approved payment schedule with urgency using its robust electronic wallet system to achieve payment to all complying agro-dealers within 24 hours, while also providing weekly progress updates until completion.
While confirming that the N30 billion represents the second tranche released by AfDB for the implementation of NAGS-AP, BOA disclosed that the funds are targeted at settling outstanding obligations from the 2024 dry and wet season programmes.
Ekwebelem added that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed that the process be treated with the “highest priority”.
According to the Managing Director/Chief Executive of BOA, Mr Ayo Sotinrin, the NAGS-AP Secretariat and BOA formally kicked off the exercise on September 18, 2025, with the handover of beneficiary data.
“This is a truly defining moment for our 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.”
He maintained that BOA has outlined conditions for pre-qualified and registered agro-dealers and suppliers eligible for payment under the scheme, which include “opening a BOA account, a mandatory step for claim processing. Registration is free and can be completed online.
“Being selected under the NAGS-AP scheme prior to 2025, as no new applications are being accepted. Having received at least one payment under the scheme. Completing account activation to enable rapid processing, with claims settled within one business day once verified.”
Sotinrin urged all beneficiaries to comply without delay, warning that failure to do so could result in processing setbacks.