The Federation Allocation Accounts Committee has deducted a total of N622.75 million over the past 15 months to repay loans disbursed to farmers under the Anchor Borrowers Programme.
The CBN established the Anchor Borrowers Programme in November 2015 to foster economic linkages between smallholder farmers and anchor companies, according to The Punch.
This initiative aims to enhance agricultural productivity by providing financial support and resources, thereby strengthening the supply chain and improving access to markets for farmers.
According to a revenue disbursement report from the FAAC, the government deducted N45.52 million monthly from May 2023 to July 2024. This brings the total deductions to N622.75 million over the 15-month period, supporting loan repayments for the Anchor Borrowers Programme aimed at aiding smallholder farmers.
However, the repaid amount of N622.75 million is negligible compared to the outstanding payment of N450.90 billion owed to the CBN as of March 2024.
The amount, titled “CBN Anchor Borrowers”, was listed as a deduction from the nation’s gross revenue each month.
However, the report did not specify the state or association to which the deduction was applied.
The Anchor Borrowers Programme has since been discontinued by the Central Bank of Nigeria, which is now focused on recovering outstanding funds associated with the initiative.
Repayment by beneficiaries had been a difficult task, forcing the bank to take extra measures.
President Bola Tinubu reportedly directed security agencies to assist the CBN in recovering Anchor Borrowers Programme funds from borrowers.
Additionally, the Central Bank of Nigeria has suspended new loan applications under its intervention programme, further emphasizing its focus on recovering existing funds and managing financial risks associated with past disbursements.
This was as the CBN Governor, Yemi Cardoso, noted that some of the previous failures of the CBN were tied to quasi-fiscal activities under the foray of “development finance activities”.
A CBN official in April that the bank was recovering the loans disbursed to increase agricultural inputs.
The official said, “There is a committee on the Anchor Borrowers programme and it has been tasked to recover the funds. There were laid down procedures between the banks and the apex bank, and those laws will be looked into to get back the funds.”
Overall, the programme benefited approximately 4.67 million farmers engaged in maize, rice, or wheat farming, significantly contributing to agricultural productivity and food security in the country.
A CBN document indicated that Kebbi State, the Rice Farmers Association of Nigeria, the Cotton Producers and Merchants Association of Nigeria, the Maize Growers and Processors Association of Nigeria, and Afex Commodities were among the top beneficiaries of the loans disbursed under the programme.
