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    Home»Business»BOA Partners UNDP to Modernize Agricultural Financing – MSME Africa
    Business

    BOA Partners UNDP to Modernize Agricultural Financing – MSME Africa

    Monah AnthonyBy Monah AnthonyJune 27, 2026No Comments4 Mins Read
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    BOA Partners UNDP to Modernize Agricultural Financing – MSME Africa
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    The Bank of Agriculture has launched a strategic roadmap aimed at modernizing its operations, expanding financial inclusion in rural communities, and strengthening support for Nigeria’s agricultural transformation agenda

    According to the bank, the initiative aligns with the Federal Government’s food security objectives and is designed to improve access to finance, enhance service delivery, and empower smallholder farmers across the country

    The Managing Director and Chief Executive Officer of the bank, Ayodeji Sotinrin, said the institution is implementing operational reforms and building strategic partnerships to improve the effectiveness of agricultural intervention programmes

    As part of the strategy, the bank is expanding collaboration with state-level agricultural delivery platforms, licensed input suppliers and international development organisations to strengthen support for farmers and agribusinesses

    A major pillar of the plan is a recently signed Memorandum of Understanding with the United Nations Development Programme. The partnership aligns the bank’s revitalisation agenda with the UNDP’s Integrated Smart States Programme and is expected to support broader agricultural development objectives

    The collaboration is also linked to the One Million Hectare Tree Crop Initiative, a presidential priority aimed at expanding commercial agriculture, creating jobs, attracting investment and increasing export opportunities. The programme is expected to help position Nigeria’s agricultural sector as an investment-ready ecosystem capable of attracting blended and climate finance

    Speaking on the bank’s vision, Sotinrin said the institution intends to deploy capital more efficiently while bringing more farmers, particularly young people in rural communities, into the formal financial system

    For MSMEs operating in agriculture, the reforms could improve access to affordable financing, reduce barriers to participation in government-backed intervention programmes and strengthen opportunities within agricultural value chains

    The bank also revealed that it has upgraded its beneficiary verification process to improve transparency and ensure that financial interventions reach genuine farmers. The new framework incorporates Bank Verification Number (BVN) checks, Know Your Customer (KYC) procedures and GPS farm mapping to reduce fraud and strengthen accountability in loan distribution

    The verification measures have received support from the All Farmers Association of Nigeria. The association noted that stronger screening processes would help ensure that agricultural funding reaches active farmers rather than individuals seeking to exploit intervention programmes

    While endorsing the initiative, the association also called for faster loan disbursement to ensure farmers receive support in time for planting seasons and other critical farming activities

    Beyond financing reforms, the Bank of Agriculture is modernising its nationwide operations through the deployment of digital farmer management systems, agency banking services and solar-powered infrastructure across its 110 branches. These upgrades are expected to improve access to financial services in underserved rural communities where traditional banking infrastructure remains limited

    The bank added that recent ICT support from the UNDP will further strengthen its digital transformation efforts, enabling it to provide both financial and extension services directly to farmers through technology-driven channels

    Going forward, the institution plans to deepen engagement with commodity associations, verified cooperatives and other agricultural stakeholders through town hall meetings and working groups. These engagements are expected to help identify genuine beneficiaries, improve programme implementation and support the delivery of the National Agri-food System Investment Plan

    The latest reforms signal a renewed effort to position the Bank of Agriculture as a key driver of rural development, agricultural productivity and financial inclusion, while supporting Nigeria’s broader goals of food security, job creation and economic diversification

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    Agricultural Financing Modernize Partners UNDP
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