The House of Representatives is investigating the N1.12 trillion spent on the Anchors’ Borrowers Programme (ABP) of the Central Bank of Nigeria (CBN) alongside the NIRSAL Microfinance Bank for N215 billion spent on agro-businesses, as well as the Bank of Industry (BoI) for disbursing N3 billion to 22,120 smallholder farmers through the Agriculture Value Chain Financing Programme.
The House Committee on Nutrition and Food Security led by its Chairman, Mr Chike Okafor, during an investigative hearing on the alleged misuse of government interventions and agricultural funding by departments, agencies, schemes, and programmes of the federal government, raised concerns that of the 24 participating financial institutions (PFIs) who disbursed the amount for the APB, only nine had indicated any interest in following up with the probe.
He said one of the key oversight mandates of the committee is to ensure proper implementation of intervention programmes by relevant government bodies related to food security and nutrition.
“We are probing how the CBN 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.
“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. So, please note. And also some of those PFIs have tried to make contact.
“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 smallholder farmers through the agriculture value chain financing programme,” he said.
“One of the key oversight mandates of the Committee on Nutrition and Food Security is to ensure proper implementation of intervention 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 to 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 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-secured and nourished populace,” he stated.
A representative of NIRSAL Microfinance Bank, Mr Charles Bassey, said insecurity was a major challenge to the successful implementation of their loan scheme, adding that in trying to determine who was qualified to benefit from the intervention, they 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 include 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,” Mr Bassey said.
On his part, Group Head, Agric Finance and Solid Minerals, Sterling Bank, Mr Olushola Obikanye, said they had repatriated N113,490,756,332.54 to the CBN and were not owing under the scheme.
“Therefore, 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. It leaves Sterling Bank with an outstanding of zero Naira zero Kobo that we are owing under this scheme,” he said.