Reps Probe N1.12trn Anchors Borrowers’ Fund Disbursement

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

The probe also covered the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) disbursement of N215 for agribusinesses and the Bank of Industry (BOI) payment of N3 billion to 22,120 smallholder farmers through the Agriculture Value Chain Financing (AVCF) programme.

Speaking at the investigative hearing, the committee’s chairman, Hon Chike Okafor, expressed concern that lawmakers have evidence of only nine of the institutions out of the 24 participating financial institutions that dispersed the Anchor Borrowers’ funds.

Okafor said one of the committee’s key oversight mandates is to ensure the proper implementation of intervention 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 maise, rice or wheat farming through 563 anchors.

“The CBN should note that we know that you have about 24 participating financial institutions (PFIs) through which you disburse these amounts. I also know that you have written to 24 of them, but we have evidence of only nine. So please note. Some of those PFIs have also tried to make contact.

“Second, we are probing how NIRSAL has disbursed N215, 066, 982, 074.50 to facilitate agriculture and agribusinesses. Also, the Bank of Industry, how you disbursed N3 billion to 22,120 smallholder farmers through the agriculture value chain financing programme.

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

“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 have 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 a legislative response to join forces with the executive arm of government and other stakeholders to tackle these issues and make Nigeria a food-secure and nourished populace,” he said.

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

Bassey said that in trying to determine who was qualified to benefit from the intervention, NIRSAL paid close attention to the guidelines.

“It was based on those guidelines that we disbursed these funds. Some of the challenges that they have written about include insecurity challenges. A couple of them pointed out that after they had invested the funds in an agricultural business, they could not return 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 asked to restructure the loan facility to allow them time to repay accordingly,” he said.

Also speaking, Olushola Obikanye, Group Head, Agric Finance and Solid Minerals, Sterling Bank, said the financial institution had repatriated N113, 490, 756, 332.54 to the CBN and was not owing under the scheme.

“The total fund repatriated to the Central Bank of Nigeria is the cumulative of the undisbursed funds that were 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 owe under this scheme,” he said.