FG to reposition BoA with N10bn capital injection

The Federal Government plans to inject N10 billion in the Bank of Agriculture (BoA) as part of measure to reposition it for improved performance.

This was disclosed by the management of Lead Capital Consortuim, the consortium tasked to provide financial advisory and policy that will support the Federal Government, regarding the recapitalisation of the bank.

The consortuim is to also ensure that good control and governance is instituted in BoA.

Speaking during a visit to the bank on Thursday, the Managing Director, Lead Capital Consortium, Dr Wale Adewunmi, said the bank would also undergo several restructuring to meet up with modern technological advancement in banking sector.

This is even as the Managing Director of the Bank, Kabir Mohammed Adamu, said the bank has recovered over N7billion as part of outstanding debts owed it by borrowers.

Adewunmi said, “Upon completion of restructuring the bank over the next 14 weeks, the Federal Government will recapitalise it with over N10 billion and subseqently, the process will continue through public funding”.

Adewunmi further explained, “The first funding will come form Federal Government, then the subsquent one will be from the public.

“The objective is that , the consortium has been tasked to provide financial advice and policy options as well that will support the Federal Government of Nigeria, regarding the recapitalisation of the Bank of Agric and also ensuring that good corporate governance is instituted into it.

“The bank is at the verge of receiving fresh capital, so it needs to really deal with issue of cooperate governance, so that there will be proper management of resources going forward.

“The second objective is also to have the BOA to catch up on the gaps it currently have in its operations. For instance, is still not having a license perse as a bank. This will be sorted out at this point so that its now properly licensed at this point by the CBN.

“Thirdly, it is planned that the capital to be injected into BOA will come from even the public. The first round will come from the government and then subsequently it will be open to the general public and interested stakeholders.

“Having said that, we are very passionate on the mandate we are given to ensure that the project is completed within 14weeks that we are told to do this exercise.”