The Nigerian Federal Government has unveiled plans to inject N1.5 trillion into the Bank of Agriculture (BOA) as part of its strategy to enhance wealth creation through the agricultural sector and bolster food security. The announcement, made by the Minister for Budget and Economic Planning, Abubakar Bagudu, highlights the government’s commitment to modernizing agriculture and ensuring that farmers have access to necessary financial resources to drive production and productivity. In addition to the agricultural sector, the government has also allocated N1 trillion to the solid minerals industry to stimulate growth and economic diversification.
Bagudu emphasized the importance of agriculture in the fight against poverty, inflation, and the promotion of inclusive economic growth. He noted that the recapitalization of the Bank of Agriculture is expected to address funding challenges within the sector, providing long-term financing to farmers and agribusinesses. The aim is to modernize agricultural practices from the artisanal level to the more complex livestock and fisheries sectors, driving wealth creation and contributing to national economic growth.
The N1 trillion allocated to the solid minerals sector is part of a broader government effort to revitalize industries outside of oil and gas. Bagudu revealed that while institutional reforms, such as the establishment of a solid minerals ministry, have been made, the sector still faces significant challenges in securing necessary capital for large-scale production. This new funding aims to accelerate growth in the sector, which holds substantial potential for diversifying Nigeria’s economy.
These investments align with President Bola Tinubu’s broader economic agenda to reduce the nation’s dependence on oil revenue and support high-growth sectors. The funding initiatives are also designed to complement other ongoing economic reforms, such as the removal of petroleum subsidies and foreign exchange market liberalization. Bagudu reassured the public that these efforts would be executed responsibly, with an emphasis on fiscal discipline and debt sustainability.
SOURCE: PUNCH