Reps to probe CBN’s anchor borrowers’ programme

Reps to probe CBN’s anchor borrowers’ programme

The house of representatives has resolved to investigate the
anchor borrowers programme (ABP) under the Central Bank of Nigeria (CBN).

 

Also, the lawmakers intend to probe the disbursement of N215
billion in loans by the Nigeria Incentive-Based Risk Sharing System for
Agricultural Lending (NIRSAL).

 

The green chamber passed the resolution during a plenary
session on Tuesday following the adoption of a motion sponsored by Chike Okafor
from Imo state.

 

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



It 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 a total of N1.09 trillion had
been disbursed through the ABP since its inception in 2015.

 

While moving the motion, Okafor claimed that the funds
intended for agricultural development in the country have been misappropriated,
resulting in “food scarcity and malnutrition”.



“The federal government through various schemes and
interventions in the last in eight years have spent over two trillion naira in
funding agricultural interventions with the view of making food available for
millions of Nigerians, but due to the alleged mismanagement, misapplication of
funds and abuse of the programmes, Nigeria is still experiencing food scarcity
and malnutrition,” the lawmaker said.

 

“The reports and allegations of abuse, mismanagement, and
misapplication of government intervention funds earmarked for agricultural
development and food security initiatives in Nigeria through the CBN’s ABP
disbursed about N1.12 trillion to 4.67 million farmers involved in either
maize, rice or wheat farming through 563 anchors.

 

“NIRSAL disbursed N215,066,980,274.52 so far to facilitate
agriculture and agrobusinesses. The Bank of Industry (BOI) disbursed N3 billion
to 22,120 smallholder farmers through the agriculture value chain financing
(AVCF) programme. Additionally, the bank funded 49 agro and food processing
businesses with N59.4 billion in loans.

 

“In 2023, the federal government unveiled a 5 billion Naira
loan facility to the Bank of Agriculture (BOA) for livestock farmers across the
country. The National Agricultural Development Fund in March of 2024,
inaugurated a NI.6 billion recovery fund for the ginger blight epidegic central
taskforce (GBECT) for the control of blight disease in ginger, among other
interventions.”

 

According to Okafor, the funds were allegedly “misused,
misapplied and channelled to non-farming and nonagricultural purposes”.

 

He said the agricultural sector plays a crucial role in
ensuring food security, improving nutrition, and supporting the livelihoods of
millions of Nigerians, and any abuse of the programmes drastically affects
millions of innocent citizens.

 

The motion was adopted when it was put to a voice vote by
Benjamin Kalu, deputy speaker who presided over the plenary.

 

Consequently, the house mandated the relevant committees to
conduct a comprehensive investigation into the alleged misuse of government
interventions and agricultural funding and report back within four weeks for
further legislative actions.

Source: Reps to probe CBN’s anchor borrowers’ programme

 - NigerianEye
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