INTRODUCING BANK OF AGRICULTURE: Presentation to House of Representatives Committee on Agriculture Mohammed K Santuraki Managing Director/CEO Improving lives, Growing Communities 1
Transcript
1. INTRODUCING BANK OF AGRICULTURE:Presentation to House of
Representatives Committee on Agriculture Mohammed K Santuraki
Managing Director/CEO Improving lives, Growing Communities 1
5. CORPORATE PROFILEThe bank has evolved from Nigerian
Agricultural Bank Limited in 1972 to Bank ofAgriculture (BoA)
Limited in 2010 Peoples Bank Launch of Project Changed of Nigeria
Octopus loan Incorporated name to (PBN) is recovery strategy as
Nigerian Nigerian NACB has150 Agricultural Agricultural established
to branches Bank-wide Bank Limited Cooperative provide micro-
nationwide resizing with a (NABL) Bank (NACB) credit to urban
golden and rural poor handshake 1972 1973 1978 1980 1990 1997 1999
2000 2008 2010 Nigerian The Family Economic Agricultural Changed
name Began operations Advancement Cooperative Rural providing
short, NACB had a Programme (FEAP) to Bank of Development Bank
medium- and long- network of 67 was established to Agriculture
(NACRDB) term loans for branches and provide micro-credit (BoA)
Limited emerged from the to the low income agricultural 6 zonal
offices merger of NACB groups through both Has 201 purposes to and
PBN as well as public banking branches with Nigerians the
acquisition of institutions and 1,558 staff the risk assets of
commercial banks FEAP. 5
6. CORPORATE PROFILE (2) The Nations largest DFI, agricultural
and rural development finance Institution 11-man board , including
4 executives - Staff strength about 1200 ---201 branches, 6 zonal
offices and a Head office in Kaduna Limited liability company MOFI
-60% share holding CBN- 40% shareholding Supervised by Federal
Ministry of Agriculture and Rural Development (FMARD) 6
7. CORPORATE PROFILE (3) Our Authorised Share Capital is N50
billion About N30 billion has been paid up , leaving a balance of
N20 billion unpaid Board structure: 11-man board , including 4
executives Staff strength about 1200 201 branches, 6 zonal offices
and a Head office in Kaduna 7
8. OUR MANDATES Key Mandates Provision of agricultural credit
and non-agric rural finance Rural savings mobilisation Capacity
development Cooperative development Agricultural information
systems Provision of technical support and extension services
8
10. AGRICULTURAL ACTIVITIES SUPPORTED Arable/field crops Tree
Crop Plantation Market Gardening Livestock and Dairy Fisheries
& Aqua-culture Horticulture_______________________________
Agro-input Supply Commodities Marketing Agro-processing
Agri-business Other Agro-allied 10
11. OUR CREDIT PRODUCTS (2) Direct loans: On lending/Wholesale:
Micro agric State Governments Micro non agric MDAs SMEs
Cooperatives Agribusinesses Farmer/Trade Groups Self Help Groups
Micro Finance Banks ( MFBs) Micro Finance Institutions ( MFIs)
11
12. OUR CREDIT PRODUCTSPRODUCTS VOLUME BANDDIRECT
LOANSMicro-loansAgriculture Up to N250kNon-Agric Up to
N250kMarketing Up to 250kSME Loans/Agro-allied Up to
N30mAgribusiness LoansON-LENDINGStates NegotiableMFBs
NegotiableCOLLABORATIONS Negotiable 12
13. DEPOSIT SERVICES Savings Accounts Target Savings Fixed
Deposits Lien deposits____________________________________________
We have extensive opportunity to expand services in this area. Our
average core deposit liability is about N6B, while we have turned
over about N370B since inception 13
14. NON FUND SERVICES Advisory role to prospective customers
Dissemination of research findings through workshops and training
sessions Organise workshops in collaboration with other agencies,
e.g. in areas of employment generation and wealth creation
potentials. 14
15. OUR SOCIAL IMPACTKPI 2002-Nov 2011 Jan-Nov.2011Loan
disbursement N44 B (US$293m) N2.7 B(US$18m)Enterprises financed
550,000 16,000Employment generation 5.5 million 162,000Loan
repayment N35B (US$267m) N4B (US$24M)Repayment rate 76% 70%Savings
turnover N391 B (US$2.5B) N 27.1B (US$184m)Accounts opened 2.1
million 25,421Collaborations 27(N5.2B), 74,000
2(N396m),Cooperatives 9,676 176formed/supportedCapacity building 8
Nil 15
17. OUR STRENGTHS Enormous experience and expertise in
agriculture and agro allied industry, rural finance. Government
ownership through CBN and MOFI Very wide national spread- 201
branches, 6 Zonal offices and a Head office Deep history and well
known brand The only national institution focused in agricultural
and rural finance Extensive untapped opportunities in Nigeria
agriculture. Extensive Real estate holdings that we can leverage on
to provide financing. 17
18. OUR CHALLENGES Lack of Lending resources BoA is
undercapitalised by about N20Billion Need to recapitalize the bank
to N100B Government to provide intervention funding to address food
security, employment generation and wealth creation Government
Funding support and engagement with NDFIs is lopsided We would like
to see higher level of engagement by our stakeholders Public
attitude to DFIs loan servicing Relevant institutions need to
provide other forms of support to farmers; extension services,
input supplies and fixing of the value chains. 18
19. OUR FUTURE Our Key challenge is to create a more
sustainable institution, while ensuring the banks mandate
retention.Our approach: Improving the Banks internal efficiency
Reviewing the Banks operating Model 19
20. OUR FUTURE (1) Improving Internal Efficiencies
MODERNIZATION Rebranded IT enhancement CAPACITY BUILDING Other
Initiatives Strengthening of Control & Risk Management Resizing
the Company Outsourcing of non-core services Rationalization of
non-core assets 20
21. OUR FUTURE (2) Reviewed the operating model to make the
institution more sustainable: Creation of NMFB Subsidiary Strategic
partner/investor required Strengthening of wholesale window New
focus on savings mobilization Expanding delivery channels: mobile
money, agent banking and Group lending 21
22. CONCLUSIONTO RECAP KEY TAKE-AWAYSCorporate Profile We are
refocusing, reforming &Our Mandates repositioning the bank Lack
of lending resourcesOur Products & Full capitalisationServices
Increased capitalisation to N100 BOur Social Impact Provision of
Agriculture InterventionOur Strengths Funds of N200BOur Challenges
We would like to see a higher level of engagement by CBN, MOFI,FMA
& otherFuture Plans MDAs in sector interventions. There is need
to rationalize the mandates of National DFIs to minimize overlaps.
Currently funding support o National DFIs is lopsided 22
23. THANK YOU FOR LISTENING Bank of Agriculture Limited 1
Yakubu Gowon Way, Kaduna, Nigeria Tel: I Mobile I
www.bankofagricultureng.com 23