News in brief:
– Nigeria’s House of Reps is investigating ₦1.12trn disbursed through the Anchor Borrowers’ Programme and other funding initiatives.
– NIRSAL and BOI are also under scrutiny for ₦215bn and ₦3bn disbursed to farmers and agribusinesses, respectively.
The House of Representatives Committee on Nutrition and Food Security has launched a thorough probe into the ₦1.12 trillion disbursed under the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ Programme (ABP).
The committee is also investigating the disbursement of ₦215 billion by NIRSAL Microfinance Bank to agribusinesses and ₦3 billion by the Bank of Industry to 22,120 smallholder farmers through the Agricultural Value Chain Financing Programme.
Only nine out of 24 PFIs accounted for
The Chairman of the Committee, Hon. Chike Okafor, raised concerns during an investigative hearing in Abuja, noting that only nine out of the 24 participating financial institutions (PFIs) involved in the ABP had presented evidence of disbursements.
“We are probing how the CBN, through the Anchor Borrowers Programme, disbursed about ₦1.12 trillion to 4.67 million farmers cultivating maize, rice, or wheat through 563 anchor organisations,” he said.
“The CBN should note: while we are aware that you have written to 24 PFIs, we only have evidence from nine. Some of the PFIs have made contact, but this is an accountability issue we must clarify,” he added.
NIRSAL, BOI disbursements are also under scrutiny
Okafor explained that the probe also covers ₦215,066,982,074.50 disbursed by NIRSAL Microfinance Bank and ₦3 billion from the Bank of Industry meant for smallholder farmers.
“These interventions must be transparent and traceable. Nutrition and food security are core elements of the Renewed Hope Agenda, and our mandate includes monitoring how these resources are allocated and used,” he noted.
He emphasised that the committee’s oversight covers implementation by Ministries, Departments, and Agencies (MDAs), as well as formulating and strengthening laws on food and nutrition security.
NIRSAL blames insecurity, floods, and drought for loan repayment challenges
In his response, Charles Bassey, a representative of NIRSAL Microfinance Bank, cited insecurity as a major hurdle to successful implementation.
“Some farmers who accessed the funds could not return to their farms due to banditry and herdsmen attacks,” Bassey said.
He added that others were affected by natural disasters like floods and drought, delaying their harvest cycles and forcing some to request loan restructuring.
Sterling Bank says it owes CBN nothing under the scheme
Meanwhile, the Group Head, Agric Finance and Solid Minerals at Sterling Bank, Olushola Obikanye, disclosed that the bank had fully repatriated all funds received under the scheme.
“The total funds repatriated to the Central Bank of Nigeria stand at ₦113,490,756,332.54,” Obikanye confirmed. “With this, Sterling Bank has no outstanding debt under the Anchor Borrowers’ Programme.”
Hon. Okafor reiterated that the committee would continue its oversight function to ensure accountability and effective use of funds aimed at achieving national food security.
He urged stakeholders to cooperate with the investigation and provide all necessary documentation.
