By Bushrah Yusuf-Badmus
The Bank of Agriculture (BOA) has announced its relentless efforts to recover a substantial loan amounting to N243 million, which was disbursed to 150 debtors between 2011 and 2024 in Kwara state. The disclosure was made by Mr. Dele Aderibigbe, the Branch Manager of BOA in Ilorin, during an interview with the News Agency of Nigeria (NAN) on Monday.
The loan in question, termed as a “warehouse loan,” has been classified as a bad debt but remains under close monitoring for potential recovery. Aderibigbe revealed that BOA is actively engaged in discussions with telecommunication companies and other stakeholders to facilitate the tracing of the debtors.
“The loan was intended to be a revolving credit facility, designed to be repaid to provide opportunities for others. Unfortunately, some recipients viewed it as a national resource to be exploited for personal purposes,” Aderibigbe remarked.
He went on to highlight instances where the loan had been misused, saying, “Why obtain a loan for purposes like taking a second wife or throwing extravagant parties? We urge them to fulfill their obligations, as they cannot escape the consequences. Through guarantors and other measures we are implementing, we will apprehend them.”
Despite BOA’s mission to enhance the lives of Nigerians by supporting agriculture and rural development, some individuals have chosen to obstruct government initiatives. Aderibigbe emphasized the bank’s rigorous process in approving and disbursing loans, including thorough investigations at various stages, such as Project Identification Visits, Pre-disbursement Visits, and Pre-takeoff Visits, before final disbursement.
“In a given year, the loan amounts range from N250,000 to N1.5 million, with a 14 percent reducing balance interest rate. The payment process is not cumbersome; they simply opted not to repay,” the BOA manager explained.
The Bank of Agriculture was established to function as a development finance institution serving the agriculture and rural development sector. It plays a crucial role in providing agricultural credit finance to support activities across the agricultural value chain, as well as aiding rural savings and micro, small, and medium enterprises (MSMEs).
NAN