The House of Representatives is to investigate the non-recovery of over N81.502 billion disbursed as part of the Anchor Borrower Programme launched by the federal government in November 2015.
This follow a motion sponsored by Rep Sergius Ose Ogun on the need for the House to investigate the usage of funds disbursed by the Bank of Agriculture to Anchor companies under the Anchor Borrowers Programme.
Ogun said it is on record that in line with its mandate, the Central Bank of Nigeria (CBN) established the Anchor Borrowers’ Programme (ABP) with the intent to create a linkage between anchor companies involved in processing and the Small Holder Farmers (SHFs) of key agricultural commodities.
According to him, the thrust of the Anchor Borrower Programme is to provide of loans to small holder farmers to boost local production of key agricultural commodities like cereals (rice, maize, wheat etc.) cotton, roots and tubers (cassava, potatoes, yam, ginger etc.), tree crops (oil palm, cocoa, rubber etc.), legumes (soybean, sesame seed; cowpea etc.), tomato and livestock (fish, poultry, ruminants etc.).
According to him, the aim of the programme was to help in stabilizing input supply to agro processors and address the country’s negative balance of payment on food.
The lawmaker informed the House that out of the N104,226,956,985.10 provided by the CBN for the Scheme, a total of N86,634,165,880.59 was disbursed to the Anchor companies (who will serve as processors) with the sum of N81, 502,322,030.31 is yet to be recovered from the defaulting Anchor companies.
He said that with the non-recovery of the outstanding N81, 502,822,030.31, other potential small holder farmers (Sl-lF) who would have been beneficiaries of the Scheme are being denied the opportunity to benefit from the scheme.
He emphasised that the non-recovery of the said balance of the loan from the Anchor companies is negatively affecting the overall objective of the Anchor Borrowers Programme, being a revolving Fund.