The Central Bank of Nigeria (CBN) has threatened to sanction banks that delay the disbursement of funds to farmers under it Anchor Borrower’s Programme (ABP).
The apex bank also disclosed that in 2020 wet season farming, it disbursed over N200 billion to small holder farmers (SHFs) which is the highest amount disbursed in a single year from the inception of its Anchor Borrowers’ Programme.
The CBN said it will henceforth share the losses of farmers on its Anchor Borrowers Programme on equal basis should such loses occur within a farming season.
CBN’s director of development finance, Mr Yusuf Yila stated this at a stakeholders’ meeting involving anchor, processors, commodity associations and banks.
Mr Yila said the apex bank had been receiving complaints of late disbursement despite having released the funds on time to the participating banks, thereby threatening the success of the Anchor Borrower’s Programme.
Similarly, he said the CBN will be more involved in the selection of input suppliers, to ensure that only reliable ones are engaged.
He said suppliers will be put on stand-by to replace those that were found wanting.
The stakeholders meeting was organised to take stock of achievements of the ABP and strategise on ways of achieving increased food production to meet the country’s ever-increasing food needs and avert food crisis in the nearest future.
Mr Yilas said the CBN-initiated Anchor Borrowers’ Programme has lifted thousands of SHFs out of poverty and generated millions of jobs for unemployed Nigerians. “The CBN has aggressively embarked and accentuated the importance of cultivating staple foods locally to drive its food security mandate and also shore up its foreign reserves by discouraging the importation of these commodities that could easily be cultivated in the country,” he stated.