Central Bank of Nigeria (CBN) has appealed to farmers who defaulted in paying back the loans obtained under the Anchor Borrowers’ Programme (ABP) to pay back.
Sadeeq Ajayi, in CBN Development Finance Office, made the appeal on Wednesday in Ibadan at the Agribusiness Innovation Clinic. But the appeal has generated curiosity as Nigerians were told early this month that farmers across the country allegedly bought the N100m presidential nomination and expression of interest forms of the All Progressives Congress, APC for the governor, Godwin Emefiele.
Operating under the banner of a coalition of commodity associations in Nigeria, the farmers said they took the decision of purchasing the forms for Emefiele after a two-day intensive meeting in Maitama, Abuja, that drew more than 30 commodity associations from 36 states of the federation and the Federal Capital Territory (FCT) because they realized that the
governor is one of the trusted and tested Nigerians that have the commitment and competence to protect the interests of farmers across the country and give priority to the commodity and agricultural value chain.ABP is an agricultural loan scheme launched in 2015 by the Federal Government, through CBN, to provide loans (in kind and cash) to small holder farmers to boost agricultural production, create jobs, reduce food import bill toward conservation of foreign reserve.
President Muhammadu Buhari, at the launch of the rice pyramid in Abuja recently said the Anchor Borrowers Programme (ABP) launched six years ago has supported over 4.8 million smallholder farmers across Nigeria to boost production of 23 agricultural commodities in the country.
Smallholder farmers cultivating cereals (rice, maize, wheat etc.) cotton, roots and tubers, sugarcane, tree crops, legumes, tomato and livestock are those captured under this initiative.
Emefiele had reported at the Monetary Policy Committee meeting in November 2021 that so far the bank had disbursed the sum of N864 billion to 4.1 million farmers cultivating 5.02 million hectares of land under the Programme (ABP).
He revealed that the amount is what the CBN has spent since the programme kicked off in 2015, citing that from September to October, the CBN disbursed N43.19 billion to support the cultivation of over 250,000 hectares of maize, sorghum, soya beans and rice in the 2021 dry season farming, under the scheme and N5.88 billion to finance six large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS).
Loans are disbursed to the beneficiary farmers through Deposit Money Banks (DMBs), Development Finance Institutions (DFIs) and Microfinance Banks (MFBs), which the programme recognises as Participating Financial Institutions (PFIs). ALSO READ:Determined To Enhance Innovation, Competition, CBN Issues Regulatory Framework For Open Banking According to the guidelines of the programme, upon harvest, the farmer repays their loans by taking their harvest to ‘anchors’ who pay the cash equivalent to the farmer’s account
But the News Agency of Nigeria (NAN) reports that the threat was issued at the clinic entitled: “Fostering Innovation and Collaboration Across the Agricultural Value Chain” organised by the Global Alliance for Improved Nutrition (GAIN). Ajayi said that majority of farmers in Oyo State, who benefited from the scheme, have not repaid their loans. He said inability of the apex bank to recover the loans from the defaulting farmers had threatened the scheme, adding that it has prevented other farmers from accessing the facility. “While the Anchor Borrowers’ Programme has recorded some level of success, the failure of farmers to repay the loans has, however, been a major setback. “Many of the farmers refused to pay back their loans due to misconception that since CBN is the lender, the loan is a ‘national cake’ and they do not have to pay back what they consider theirs as citizens. “This attitude has made it difficult for other farmers, who also want to access the loan, to benefit from the scheme,” he said. Ajayi said that stakeholders, including the traditional rulers, should appeal to the defaulting farmers to promptly repay the loans for the sake of others. “Of course, we are engaging various stakeholders and we expect the narrative to change very soon so that more people can have access to the fund,” he said. In his keynote address, Mr Olasukanmi Olaleye, the Oyo State Commissioner for Trade, Industry, Investment and Cooperatives, lauded the initiative of GAIN to tackle malnutrition in the country. Olaleye, represented by Mr Mukaila Oladipo, a Deputy Director in the ministry, said that food fortification is one of the safest, most effective and affordable ways of addressing the micronutrient gaps in the country. Also, Mr Godwin Ehiabhi, a Senior Project Manager, GAIN Nigeria, said that improved access to safe and nutritious food would reduce the country’s high rate of malnutrition. (NAN)
