Nigeria's Bank of Agriculture launches digital loan disbursement model

The Bank of Agriculture (BoA) in Nigeria, led by Managing Director Ayodeji Sotinrin, is shifting its financing approach to prioritize impact over profit. Under the new model, loan funds are paid directly to accredited input suppliers rather than given in cash to borrowers, with only about five percent released as cash for logistics. This system is intended to curb diversion of subsidised agricultural loans and ensure funds support genuine farming activities.

BoA is also undertaking a digital transformation, deploying core banking software, mobile and internet banking platforms, and Smart POS terminals that integrate biometric verification via the National Identification Number. An electronic wallet system now allows transparent distribution of inputs such as fertilizer and crop protection, enabling officials to “load five bags of fertilizer on someone's account, on his wallet.” These initiatives aim to expand access to finance for Nigerian farmers and improve service delivery across the country.