Reps panel probes CBN’s ‘N1.12trn’ anchor borrowers’ programme

The house of representatives committee on nutrition and food security has commenced an investigation into the alleged N1.12 trillion anchor borrowers programme (ABP) under the Central Bank of Nigeria (CBN).

The probe comes nearly 11 months after the house approved a motion calling for the investigation into the programme.

The ABP was launched in November 2015 to create a linkage between smallholder farmers (SHFs) and anchor companies involved in processing the required key agricultural commodities.

The programme was designed to provide farm inputs (in kind and cash) to SHFs to boost production of the key commodities, stabilise input supply to agro-processors and address Nigeria’s negative balance of payments on food.

In March 2023, the CBN said N1.09 trillion had been disbursed through the ABP since its inception in 2015.

Speaking at the investigative hearing on Tuesday, Chike Okafor, chairman of the committee, said there are claims about the misuse of the funds.

“We are probing how the Central Bank of Nigeria, through the anchors borrowers programme, disbursed about N1.12 trillion to 4.67 million farmers involved in either maize, rice or wheat farming through 563 anchors,” Okafor said.

“The CBN should note that we are aware that you have about 24 participating financial institutions (PFIs) through which you disburse these humongous amounts.

“I am also aware that you have written to 24 of them, but we have evidence of only nine.”

The lawmaker said the committee is also probing the disbursement of N215 billion in loans by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

“Second point we are probing is how NIRSAL disbursed N215,066,982,074.50 so far to facilitate agriculture and agribusinesses, and also the Bank of Industry, how it disbursed N3 billion to 22,120 smallholder farmers through the agriculture value chain financing programme.

Charles Bassey, a representative of NIRSAL Microfinance Bank, blamed insecurity as a hindrance to the effective implementation of the programme.

“A couple of them had pointed to the fact that after they had invested the funds in agricultural business, they could not go back to their farms because of the experience of banditry and herdsmen,” Bassey said.

“That delayed their seasonal interventions and harvesting. Some also pointed to natural disasters such as flooding and drought, which affected them.”

He said some farmers had requested a loan restructuring to make repayment easier.

Olushola Obikanye, group head of agric finance and solid minerals at Sterling Bank, said the financial institution repatriated N113,490,756,332.54 to the CBN and currently owes nothing under the scheme.