The Bank of Agriculture (BOA) is facing difficulties in recovering N243 million in loans disbursed in Kwara state, as debtors view it as a share of the national wealth, according to Dele Aderibigbe, the BOA Ilorin branch manager.
This loan has been classified as a bad debt, but recovery efforts are still underway. A total of 150 debtors owe the bank N243 million, which was disbursed between 2011 and 2024.
BOA manager reveals loan misuse
Aderibigbe mentioned that the loan was intended to be a revolving fund, to be repaid to provide opportunities for others.
However, some individuals perceive it as a national resource to be exploited.
He revealed that some debtors misused the loan, using it for purposes other than its intended use, such as taking second wives or hosting parties.
Despite the challenges in debt recovery, Aderibigbe emphasized that the debtors would not escape without consequences.
The BOA is utilizing guarantors and other measures to apprehend them, and telecommunication companies are also assisting in tracking down the debtors.
Regarding BOA’s due diligence before loan disbursement, Aderibigbe explained that the bank conducts project identification visits, pre-disbursement visits, and pre-take-off visits to assess applicants’ suitability for loans.
Investigations are conducted on the project, but the application process and payment method are not overly complicated, with applicants accessing between N250,000 and N1.5 million at a 14 percent reducing balance interest rate.