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.