Vice President Kashim Shettima has unveiled the Federal Government’s plans to enhance and restructure the Bank of Agriculture (BOA) with the aim of fortifying Nigeria’s agricultural sector and ensuring national food security. Concurrently, the Federal Government has officially handed over operations of the Zungeru Hydroelectric Power Plant to Penstock Limited, a move anticipated to amplify Nigeria’s power generation capacity and address the nation’s escalating energy needs.
The disclosure occurred during the initial 2024 meeting of the National Council on Privatisation (NCP) at the Presidential Villa in Abuja on Tuesday. Vice President Shettima, addressing the gathering, acknowledged the BOA’s potential in playing a pivotal role in achieving national food security due to its widespread branch network across all senatorial districts. However, he voiced concerns about the bank’s current practices, specifically its inclination to disburse unsustainable loans.
Senator Shettima proposed the modernization of BOA, stressing the importance of leveraging technology and upgrading branch facilities. He emphasized that embracing modern financial systems would enable the bank to function more efficiently, supporting agricultural development. The Vice President also advocated for the integration of the Green Imperative Project, suggesting the provision of agricultural machinery to every farmer and emphasizing the use of technology to track these items.
Regarding the BOA’s recapitalization and restructuring, a committee led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is finalizing a report, with key decisions already made and further updates expected soon.
The NCP meeting also highlighted significant progress in the Zungeru Hydroelectric Power Plant (ZHPP) concession. The official transfer of plant operations to Penstock Limited took place on January 23, 2024, following the signing of the Concession Agreement on December 13, 2023. The NCP announced that, in line with Council approval, the Concessionaire fulfilled its obligations by paying 50% of the commencement fees on January 5, 2024.
Other updates at the meeting included ongoing efforts to evict illegal occupants and resolve court cases related to the sale of NITEL/MTEL property at Moloney Street, Lagos. Additionally, progress was noted in the audit of NIPOST properties nationwide, despite challenges from NIPOST and unions. The Federal Mortgage Bank Restructuring also advanced, with the bank’s management submitting nominations to the Implementation Committee, which is set to commence work shortly.