The Federation’s Office of the Auditor General has sounded the alarm on the possibility that the Bank of Agriculture (BOA) may find itself in difficulty due to the bank’s inability to meet its obligations and provide meaningful service to the public. public.

In eight audit requests contained in the 2019 report submitted to the Clerk of the National Assembly and signed by the Auditor General of the Federation, Adolphus Aghughu, the AuGF also questioned the high turnover of directors general by the bank and the non-composition of the board of directors to oversee the affairs of the bank.

He said that events within the bank pose a major threat to the continuity of the bank as a growing concern, which could result in the loss of funds and investments of stakeholders.

The Auditor General’s report on the bank can be found on pages 393-402 of the Federation’s Auditor General’s annual report on non-compliance issues / internal control weaknesses in federal government ministries, departments and agencies of Nigeria for the year. ended December 31, 2019 ”.

Reference AuGF / AR.2019 / 02 and addressed to the Clerk of the National Assembly, the report dated September 15, 2021 was signed by the Auditor General of the Federation, Adolphus Aghughu.

The claims against the bank include the increase in non-performing loans amounting to 75.595 billion naira, the indication of a problem due to a continuing loss decision amounting to 49.582 billion naira and the non-payment. outstanding equity by shareholders (Central Bank of Nigeria and Ministry of Finance Incorporated) amounting to N16.391 billion.

It also includes a bad loan from the Federal Ministry of Water Resources in the amount of 2.411 billion naira, the non-return of the audited financial statements for 2019 to the Auditor General of the Federation, the overdue mandate of the external auditors, the non-composition of the Board of Directors and the turnover of general managers by the bank.

He added that the practices within the bank violate the provisions of Article 8.3.2 of the Regulatory and Supervisory Guidelines for Development Financial Institutions in Nigeria 2015 and Article 12.3 of the Prudential Guidelines for Licensed Banks. in Nigeria 2010.

He said that “the audit review of reports from the risk asset management department of BOA Ltd. on non-performing loans (NPL) found that the non-performing loan as at 31 December 2019 amounted to 75 595 161 603.91 N. “

He added that the bank’s statement of comprehensive income showed a steady loss of the bank’s income between the fiscal years ended December 31, 2017 and 2019, amounting to around 49.582 billion naira over the three-year period.

He added that the bank’s capital adequacy ratio is below the regulatory minimum of 10%, indicating the existence of significant uncertainty which casts significant doubt on the bank’s ability to continue operating. .

He added that despite the President’s approval in 2001, the Ministry of Finance Incorporated paid a total of 27.7 billion naira over a period of 14 years, with an additional amount of 1.5 billion naira. paid in 2018, while the central bank of Nigeria paid 3.6 billion naira in 2003 after paying 400 million naira between April 1980 and October 1993.

He said stakeholders still have around N16.391 billion to pay in the bank’s outstanding equity, adding that the delay in paying equity has led to an inadequate capital base and difficulties in fulfill its mandate, reports The Nation.