Nigeria’s President, Bola Tinubu has issued directives to top security agencies to recover substantial government funds from the defaulters of the Anchor Borrowers’ Loan Scheme by September 18, 2023, in a resolute move aimed at bolstering Nigeria’s agricultural sector. The President’s firm stance is driven by his vision to make these recovered funds accessible to genuine farmers seeking financial support for increased food production.
The Anchor Borrowers’ Loan Scheme, initiated by the Central Bank of Nigeria (CBN) to inject cash into the agricultural landscape, has hit a roadblock due to the failure of beneficiaries to repay their loans upon maturity. This delay in loan recovery has not only tied up government resources but has also prevented other potential beneficiaries from accessing the program’s benefits.
Since its inception, the CBN has disbursed a substantial sum of N1.1 trillion to beneficiaries of the Anchor Borrowers’ Scheme. Regrettably, only slightly over N546 billion has been repaid, leaving an alarming balance of N577 billion unaccounted for.
This financial bottleneck has raised concerns within the Presidency, which fears that the program’s objectives might be compromised if these substantial funds are not promptly retrieved from the defaulting borrowers.
President Bola Tinubu, having been briefed extensively on the situation, is deeply troubled that such a significant sum of money, with the potential to provide support to countless other farmers, is being withheld by some beneficiaries.
Moreover, reports indicate that a subsidiary of the CBN and a commercial bank operating in Nigeria allegedly diverted N255 million, originally intended to assist farmers and other deserving loan applicants in improving their agricultural production.
These intermediary institutions, acting as conduits between the borrowers and the CBN, are accused of fraudulently redirecting N255 million secured from the CBN, neither disbursing it to the intended beneficiaries nor returning it to the CBN.
In light of these developments, several managers involved in these financial transactions have been questioned regarding the substantial loans. Many have reportedly confessed to securing these loans and acknowledged potential breaches related to repayment.
The Anchor Borrowers’ Program was initially designed to enhance agricultural production across various sectors, including the Maize Farmers’ Association, Soya Beans, and Cotton Farmers’ Association.
Further investigations reveal that the Maize Producers Association received a loan of N39 billion under the Anchor Borrowers’ Program but has thus far managed to refund only N23 billion. Similarly, the Cotton farmers obtained a loan of N14 billion, with a repayment of N5 billion recorded to date.
- Tags: Agriculture, farmers, Tinubu
