Anchor Borrowers’ Programme: Farmers owe CBN N77bn, says BOA

Alwan Hassan, acting managing director, Bank of Agriculture (BOA), says N77.18 billion loans collected by farmers under the Anchors Borrowers’ Programme (ABP) have not been repaid.

ABP is an agricultural loan scheme launched in 2015 by the federal government through the Central Bank of Nigeria (CBN). It was designed to boost agricultural yields, halt large volumes of food importation and address negative trade balance.

According to NAN, Hassan disclosed this on Wednesday in Abuja at a public hearing by the house committee on agricultural production and services on the usage of funds disbursed to anchor companies under the ABP.

He said that out of the total sum of N91.87 billion released by the CBN for the programme, only N14.68 billion was repaid.

Hassan further lamented that the implementation of the scheme was fraught with serious challenges to the bank.

“The commodity associations were allowed to migrate freely between PFIs without settling prior indebtedness. The bank raised observations that such actions will affect recovery commitment,” he said.

“Insurance was not properly managed. In some cases, the premium was paid late and in some cases unpaid.”

Hassan said that nonchalance to debt service by beneficiaries who never intended to pay back the loans was also a threat to the ABP.

He noted that cases of insecurity such as attacks by criminal herdsmen, armed robbery, and kidnapping had made it difficult for farmers to concentrate on their farms.

“Natural disasters with cases of farm loss due to flooding, early cessation of rain, and drought also pose serious challenges to the scheme,” he added.

At the hearing, Lawal Idirisu, a member of the committee, asked Hassan to name the debtors, adding that the document being presented was incomplete without their names.

“This document is incomplete, we need details of those who have collected the loans. Let us step down the hearing until all relevant documents are brought before this committee,” he said.

Muntari Dandutse, the chairman of the committee, said that the public hearing was sequel to a motion to investigate the funds disbursed through the ABP.

He said that the motion was for the benefit of the people.

Dandutse assured that the committee would come up with a reasonable recommendation.