-Merger with the Central Bank of Nigeria’s NIRSAL Microfinance Ltd.
-Recapitalization to allow fresh capital injection to revitalize the bank, hence the immediate reconstitution of the Board of Directors of the Bank to enhance corporate governance.
-Ceding National Agricultural Land Development Authority (NALDA) land titles to BOA so that it reflects in its Balance Sheet, thus increasing its capital adequacy for the purpose of raising funds from institutional investors.
-Provision and upgrade of the Bank’s ICT infrastructure to automate processes, reduce costs and enhance the Bank’s outreach to the grassroots
-Enhance governance and risk management by appointing qualified Board members and senior management with relevant expertise.
Let me quickly touch on a couple of things.
Recapitalization of BOA is a must and the right step to go. Currently MOFI controls 60% shares while CBN controls 40% shares.
The past proposal was to reduce government shareholding to 40%, bring in private capital of capital amounting to 20% shares and list it on the stock exchange for the public to buy 40%. Some have argued that the farmers cooperative union be given some percentage of shares. Which ever way, we expect that ultimately BOA will be listed for the public to buy shares. Past administration pegged the recapitalization BOA to around N200 billion in 2019, we may be looking at a recapitalization of N500 billion this time.