September 24, (THEWILL) — President Bola Tinubu has directed the Bank of Agriculture (BOA) to settle all outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP).
The presidential order followed the release of N30 billion by the African Development Bank (AfDB) as the second tranche for implementing the scheme.
A statement signed by the external media relations lead for BOA, Judith Ekwebelem, confirmed that the N30 billion represents the second tranche released by AfDB for the implementation of NAGS-AP and that the funds are specifically targeted at settling outstanding obligations from the 2024 dry and wet season programmes.
Noting that the move will serve as a turning point for the sector, Ekwebelem said the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed that the process should be treated with the “highest priority”, highlighting the federal government’s determination to fast-track agricultural development and improve food security in Nigeria.
She explained that BOA has been tasked with ensuring smooth and timely disbursement of funds to critical stakeholders in food production.
The bank pledged to execute the approved payment schedule with urgency, using its electronic wallet system to achieve payment to all complying agro-dealers within 24 hours. It also committed to providing weekly progress updates until the exercise is completed.
The Managing Director and Chief Executive of BOA, Ayo Sotinrin, disclosed that the NAGS-AP Secretariat and BOA formally commenced the payment exercise on September 18, 2025, with the handover of beneficiary data. He described the development as a landmark step for Nigeria’s agriculture.
“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 stated.
Sotinrin further outlined the conditions for pre-qualified and registered agro-dealers and suppliers eligible for payment. These include opening a BOA account as a mandatory step for claim processing, with registration free and available online. Beneficiaries must also have been selected under the NAGS-AP scheme prior to 2025, as no new applications are currently being accepted. In addition, they must have received at least one payment under the scheme and completed account activation to enable rapid processing, with verified claims to be settled within one business day.
He urged all beneficiaries to comply without delay, warning that failure to meet these requirements could lead to setbacks in processing.
The initiative is expected to strengthen support for farmers and stabilise Nigeria’s food supply chain, while also positioning BOA as custodian of all agricultural financing programme funds.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
