1. INTRODUCING BANK OF AGRICULTURE:Presentation to House of Representatives Committee on Agriculture Mohammed K Santuraki Managing Director/CEO Improving lives, Growing Communities 1

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4. PRESENTTION OUTLINE Our Corporate ProfileOur Mandates Activities Supported Agricultural Value Chain Delivery ChannelsOur Products & Services Credit Products Savings Services Non-Funded ProductsOur Social ImpactsOur StrengthsOur ChallengesOur Future PlansConclusion 4

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

9. AGRICULTURAL VALUE CHAIN Agricultural Input Manufacturers/suppliers Farmers/Producers Agricultural Commodities Storage & Marketing Agricultural Commodities Processing Industrial Manufacturers Trade and Exporters. 9

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

16. OUR CURRENT PORTFOLIOLOAN TYPES AMOUNT (N) Proportions BENEFICIARIESMicro loan 10.2B 58% 12,409Macro Loans 4.7B 27% 63On-lending 457.6m 3% 135Special Projects 2.2B 12% 2,640TOTAL 17.6B 100% 15,112 16

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