Tinubu Orders Agriculture Bank to Clear Arrears for Agro-Dealers Under NAGS-AP

News in Brief:

• -President Bola Tinubu has directed the BoA to settle outstanding payments to agro-dealers under the NAGS-AP, with a newly released ₦30 billion fund from the AfDB.
• -The bank has promised a smooth and timely disbursement through its swift payment system, as exercise already commenced in September.

President Bola Tinubu has directed the Bank of Agriculture (BoA) to clear all outstanding arrears owed to agro-dealers and input suppliers under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP). The order follows the release of ₦30 billion from the African Development Bank (AfDB), representing the second tranche of funding for the 2024 dry and wet season farming programmes.

Under the directive, BoA will also serve as the custodian of all agricultural financing programme funds, ensuring efficient and transparent disbursement to key players in the food production chain.

Who It Concerns

According to Judith Ekwebelem, BoA’s external media relations lead, the bank is mandated to process payments within 24 hours for compliant agro-dealers through its electronic wallet system. Weekly progress updates will be published until all arrears are settled.

The Minister of Finance, Wale Edun, instructed that the payment process be prioritised as part of broader government efforts to accelerate agricultural development and safeguard national food security.

BoA’s Managing Director/CEO, Ayo Sotinrin, described the move as a “defining moment” for Nigeria’s agricultural sector. He said the initiative removes bureaucratic delays, enabling farmers and suppliers to move from subsistence practices to sustainable agribusiness. The disbursement exercise formally commenced on September 18, 2025, after beneficiary data was handed over by the NAGS-AP Secretariat.

How Farmers Can Access Payments

Sotinrin explained that only pre-qualified and registered agro-dealers under NAGS-AP before 2025 are eligible for payment. Beneficiaries must:

• Have an activated BoA account (registration is free and online).
• Have received at least one payment under the scheme.
• Complete account activation for claims to be processed within one business day.

He urged beneficiaries to comply quickly, warning that delays could slow down the payment process.

What You Should Know

The National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) is a flagship financing programme launched by the Federal Government in 2023 with AfDB support. It began with wheat cultivation during the dry season and now covers staple crops such as rice, maize, sorghum, millet, soybean, and cassava across all 36 states and the FCT.

The programme incorporates modern payment systems and recently added an agricultural insurance component to reduce risks from climate change, pests, and diseases. So far, NAGS-AP has supported over 340,000 farmers, with its design aimed at cutting bureaucracy and creating a modern agricultural financing ecosystem that strengthens Nigeria’s food security.