The Bank of Agriculture (BOA) is partnering with the Nigerian Postal Service (NIPOST) to extend its reach to farmers in Nigeria. The memorandum of understanding (MOU) was signed in the nation’s capital Abuja on Monday. During the agreement signed by both parties, they said that the 1,184 post offices in the country would serve as one-stop outlets to render financial services to the farmers.
The partnership is also expected to serve the purpose of BOA for network expansion at minimal cost and NIPOST for asset optimisation.
The Post-Master General, Barrister Bisi Adegbuyi, said that NIPOST can make available its infrastructural facilities to agricultural communities close to it.
“NIPOST has approximately 1184 own post offices and about 600 functioning postal agents and post shops. 70 per cent of post outlets are located in rural areas where farmers live.
“Sorting offices of most rural post offices are highly underutilized and can be used as warehouses for farm implements and inputs in the planting seasons and for commodity aggregation in the harvest seasons.
“This would enhance prospects for an effective warehouse receipt system in the medium term.”
The Chief Executive Officer of the Bank of Agriculture (BOA), Alhaji Kabir Mohammed said that there was need to build extensive network of physical and technological driven delivery channels, that would enable farmers, value-chain players and the rural economies have easy access to financial services in close proximity to their areas of operations.
He added that some of the warehouse facilities in rural communities belonging to NIPOST could serve as storehouse to help farmers reduce issues of post-harvest losses.
He stated that the bank currently has 140 branches and six zonal offices which is grossly inadequate to serve farmers population.
“There is need to build a more extensive service delivery network to enhance the bank’s distribution and collection capabilities in a cost effective manner.”
Incorporated in 1972, Bank of Agriculture Limited is the nation’s foremost agricultural and rural development finance institution. Part of its mandate is to provide credit to support all activities in the Agricultural Value Chain.
