FG Moves to Merge CBN's NIRSAL Microfinance Bank With Bank of Agriculture

• The Nigerian government is proposing the merger of the Bank of Agriculture and the NIRSAL Microfinance Limited
• NIRSAL Microfinance Limited belongs to the Central Bank of Nigeria (CBN) and is charged with providing seed funding to farmers
• The National Council on Privatisation disclosed that the bank will be provided with funds after the merger

Legit. Pascal Oparada has been reporting on tech, energy, stocks, investment, and the economy for over a decade.

The National Council on Privatisation (NCP) disclosed on Wednesday, April 24, 2024, that it is considering merging the country's Bank of Agriculture with the Central Bank of Nigeria (CBN) NIRSAL Microfinance Limited.

The council also said it plans to inject new funds into the banks to rejuvenate them after the merger.

Decision made to boost food security in Nigeria

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The decisions were the recommendations made by the NCP's Committee on BOA, which were disclosed during a council meeting at the Presidential Villa in Abuja.

According to reports, Vice President Kashim Shettima emphasised President Bola Tinubu's dedication to restructuring and improving the Bank of Industry to boost food security in the country.

Shettima said:

"Let's get very sound professionals with integrity to manage the bank."

"If we use it well, it will be a tool for transforming our economy because agriculture is the key."

FG to recapitalise the banks.

At the presentation, the Minister of Finance, Wale Edun, explained that the council's decision was based on the challenges identified and the need to address the banks' issues.

The minister highlighted the NCP's essential recommendations, such as reconstituting the Banks' Boards of Directors to improve corporate governance.

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He stressed the importance of financing the institution with enough capital from its shareholders.

He also said the council suggested creating an independent system operator for the Transmission Company of Nigeria (TCN) to boost transparency and efficiency in the sector.

FG releases application link for presidential grants

Legit.ng previously reported that the Nigerian government had opened an application portal for its presidential conditional grant for nano businesses under the presidential palliative programme.

The initiative offers a grant of N50,000 per beneficiary to support one million small businesses in all the 774 local government areas in the country.

The federal government will partner with state governments, ministers, NASMEs, senators, and rep members to shortlist beneficiaries using specific selection criteria.

Source: Legit.ng