The Central Bank of Nigeria in the past six years recorded a 76.13% or N378.5 billion shortfall in loan repayment of its Anchor Borrowers Programme (ABP), the Punch reported, citing a data from the CBN.
The CBN has executed 2.3 million projects under programme between 2015 when it was started and November 2020.
A total of N497.2bn has been disbursed by the apex bank to farmers withing the period in review, however, the beneficiaries have repaid only N118.7 in review according to the report.
The Anchor Borrowers’ Programme (ABP) which was established on November 17, 2015 is intended to create a linkage between large companies involved in the processing and small holder farmers (SHFs) of the required key agricultural commodities, according to the CBN.
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The aim is to increase agricultural output and significantly improving capacity utilization of processors. Other objectives include: increase banks’ financing to the agricultural sector, to reduce agricultural commodity importation and conserve external reserves among others.
The targeted commodities under the programme are; Cereals (Rice, Maize, wheat etc., Cotton, Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.), Sugarcane, Tree crops (Oil palm, Cocoa, Rubber etc.), Legumes (Soybean, Sesame seed, Cowpea etc., Tomato, Livestock (Fish, Poultry, Ruminants etc.)
The loan is targeted at smallholder farmers engaged in the production of identified commodities across the country.
CBN on Tuesday 9 June, said it would fund 1.6 million farmers across the country in the 2020 wet season. through its Anchor Borrowers Programme (ABP).
ABP beneficiaries receive the loans through the participating financial institutions – Deposit Money Banks, Development Finance Institutions and Microfinance Banks.
The programme has been commended by experts, however they pointed out insecurity as the major factor working against the effectiveness of the scheme.
An economist and Chief Executive Officer of SD&D Capital Investment, Gbolade Idakolo said, “The ABP programme is a commendable programme. But the end result has been rubbished by the problem of insecurity arising from the farmers-herders’ crises.
“Most of the farmlands have been overrun by herders, which has made the farmers to be unable to repay the loans acquired.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
