President Bola Tinubu has directed the Bank of Agriculture (BOA) to clear outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP).
The directive follows the release of N30 billion from the African Development Bank (AfDB), targeted at strengthening Nigeria's food supply chain and supporting smallholder farmers.
The move, described as a turning point for agricultural financing, positions BOA as custodian of all agricultural programme funds. According to BOA's external relations lead, Judith Ekwebelem, the bank is expected to ensure smooth disbursement of payments to stakeholders critical to food production.
This decision is expected to boost confidence among agro-dealers who have long faced payment delays that disrupted input supplies to small businesses in the sector.
To ensure efficiency, BOA pledged to execute payments with urgency through its electronic wallet system, promising to settle verified claims from agro-dealers within 24 hours. The bank also committed to providing weekly progress updates until completion. For many small businesses in the agricultural value chain, this mechanism could ease cash flow challenges and improve access to farm inputs, particularly after the 2024 dry and wet season programmes.
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BOA Managing Director, Ayo Sotinrin, said the exercise formally began on September 18, 2025, with the handover of beneficiary data by the NAGS-AP Secretariat. He stressed that the scheme would "unlock opportunities for farmers to move beyond subsistence farming into sustainable and profitable agribusiness."
The bank outlined eligibility conditions for pre-qualified suppliers, including maintaining a BOA account, having received prior payments under NAGS-AP, and completing account activation for rapid processing.
Industry watchers believe the directive could mark a fresh phase of accountability and responsiveness in agricultural financing.
By reducing bureaucratic delays and ensuring payments reach grassroots agro-dealers quickly, the initiative is expected to strengthen the role of small businesses in Nigeria's agricultural economy.
Analysts say if effectively implemented, the intervention could help stabilize input supply, boost food production, and expand opportunities for SMEs across the agri-value chain.
