BOI Introduces Safety Compliance Requirement for Locally Made Agricultural Tools

By Adekunle Aliyu

The Bank of Industry (BOI) has announced a major change to its agricultural development loan policy by introducing a mandatory safety compliance framework for all locally fabricated farming tools funded through its loan facilities. The new requirement, which came into effect on November 1, 2024, is aimed at reducing machinery-related accidents and improving the quality of indigenous farming equipment across the country.

According to an official statement, loan applicants who seek funding for the production of agricultural machinery will now be evaluated based on a safety compliance framework. This framework will assess key factors such as the quality of materials used, structural soundness, and the inclusion of essential operational safety features.

Dr. Kemi Adebayo, Executive Director of Agricultural Finance at BOI, stated that the policy reflects the bank’s commitment to sustainable and responsible development. She explained that while the bank remains a strong advocate for local manufacturing, the safety and durability of agricultural tools must be guaranteed.

“Our commitment is to sustainable growth. While we vigorously support local content, we must ensure that the tools our farmers use are not only efficient but also safe and durable. This new framework is a critical step in that direction,” she said.

Sources familiar with the policy development confirmed that the safety framework draws on technical insights aligned with the national guideline ASSPS-5040-2301. This guideline was recently adopted by the Standards Organisation of Nigeria in collaboration with the American Society of Safety Professionals, Nigerian Chapter.

Industry stakeholders have expressed support for the new direction. Mr. Femi Adebisi, President of the All Farmers Association of Nigeria (AFAN), described the move as a welcome development. He noted that many farmers have faced accidents and financial losses due to poorly fabricated local equipment that lacked basic safety features.

The BOI expects the policy to not only improve safety outcomes but also raise the standards of local agricultural machinery production. The bank believes this will support the professionalisation of the sector and enhance the competitiveness of Nigerian-made products in the domestic and regional markets.