Reps Begin Probe Of N1.12trn Anchor Borrowers’ Fund Disbursement, Others

The House of Representatives through its Committee on Nutrition and Food Security has commenced investigation into the disbursement of the N1.12 trillion Anchors Borrowers Programme.

The probe also covered Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL’s) disbursement of N215billion for agrobusinesses and Bank of Industry (BOI’s) payment of N3 billion to 22, 120 small holder farmers through the Agriculture Value Chain Financing (AVCF) programme.

Speaking at the investigative hearing, the chairman of the Committee, Hon. Chike Okafor, expressed concern that out of the 24 participating financial institutions who disbursed the Anchors Borrowers funds, lawmakers have evidence of only nine of the institutions.

Okafor said one of the key oversight mandate of the Committee was to ensure proper implementation of interventions programmes by relevant government agencies in food security and nutrition.

“We are probing how the Central Bank of Nigeria through the Anchors Borrowers Programme disbursed about N1.12 trillion to 4.67 million farmers involved in either maize, rice or wheat farming through 563 anchors.

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“The CBN should note, we are aware that you have about 24 participating financial institutions (PFIs) through which you disburse these humongous amounts. I am also aware that you have written to 24 of them but we have evidence of only nine.

“Second point we are probing how NIRSAL disbursed N215, 066, 982, 074.50 so far to facilitate agriculture and agribusinesses. And also the Bank of Industry how you disbursed N3 billion to 22, 120 small holder farmers through the agriculture value chain financing programme.

“One of the key oversight mandate of the Committee on Nutrition and Food Security is to ensure proper implementation of Interventions programmes by relevant Ministries, Departments and Agencies (MDAs) and agencies of government related to food security and nutrition. Investigations, monitoring of resource allocation, advancement of new laws and strengthening of existing ones among others, on matters related nutrition and food security.

“These are comprehensively contained in the committee’s jurisdiction as captured in the standing order of the House. Please note that nutrition and food security are twin issues that cannot be separated and has been on the front burner of the renewed hope agenda of the present administration.

“The creation of this committee on Nutrition and Food security is legislative response to join forces with the executive arm of government and other stakeholders to tackle these issues and make Nigeria a food secured and nourished populace,” he said.

A representative of NIRSAL Microfinance Bank, Charles Bassey, told the panel that insecurity was a major challenge to a successful implementation of the loan scheme under its supervision.

Bassey said in trying to determine who was qualified to benefit from the intervention, NIRSAL paid attention very closely to laid down guidelines.

“It was based on those guidelines that we disbursed these funds. Some of the challenges that they have written about included insecurity challenges. A couple of them had pointed to the fact that after they had invested the funds in agricultural business, they were not able to go back to the farms because of the experience of banditry and herdsmen.
“These delayed their seasonal interventions and harvesting. Some also pointed to natural disasters such as flooding and drought which affected them. A few of them actually asked for restructuring of the loan facility to allow them time to repay accordingly,” he said.

Also speaking, Group Head, Agric Finance and Solid Minerals, Sterling Bank, Olushola Obikanye, said the financial institution had repatriated N113, 490, 756, 332.54 to the CBN and it was not owing under the scheme.
“The total fund repatriated to the Central Bank of Nigeria, which is the cumulative of the undisbursed funds that was returned and the disbursed funds that were returned.

“The total funds repatriated to the Central Bank stood at N113, 490, 756, 332.54 and it leaves Sterling Bank with an outstanding of zero naira zero kobo that we are owing under this scheme,” he said.