A major loan controversy is brewing between the Bank of Agriculture (BOA) and the All Farmers Association of Nigeria (AFAN) over the repayment of ₦20 billion in agricultural loans. While BOA is preparing a recovery campaign to reclaim the funds, farmers are pushing back—denying receipt of the loans and demanding full disclosure of beneficiaries.
BOA's Managing Director, Ayo Sotinrin, has maintained that the bank, though government-owned, operates as a commercial entity and will not tolerate loan defaults. He revealed plans for a nationwide "operation recover loan" initiative and stated that compliant borrowers could requalify for new funding under revised terms, as the bank moves towards a digital-first system.
But AFAN's President, Kabir Ibrahim, challenged the bank's claims, insisting that most genuine farmers never received any such funds. He demanded that BOA publish a list of loan recipients to clear the air.
Further complicating the issue, ActionAid Nigeria's Azubike Nwokoye argued that the loans were disbursed to politically connected individuals rather than working farmers. He emphasized the need for proper profiling of recipients and warned that continued political interference would undermine efforts to build a credible agricultural finance system.
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Grassroots farmers echoed this sentiment. Some complained of inaccessible loan procedures, opaque systems, and zero follow-through on previous government recapitalization promises—such as the anticipated ₦1.5 trillion injection into BOA.
Stakeholders argue that unless loan distribution becomes more transparent and accessible to actual players in the agricultural sector, the goals of food security and inclusive economic growth will remain out of reach. The situation highlights a deeper issue in Nigeria's agri-financing landscape, where political interests often overshadow business fundamentals.
The pressure is now on BOA and the federal government to rebuild trust with small and medium-scale agribusinesses by implementing reforms that prioritize transparency, inclusivity, and accountability.
