The House of Representatives Committee on Nutrition and Food Security has commenced a comprehensive investigation into the alleged diversion of N1.12 trillion earmarked for the Anchors Borrowers Programme (ABP), initially designed to support farmers across Nigeria.
At the investigative hearing held in Abuja on Tuesday, Committee Chairman Chike Okafor expressed concern over the lack of transparency in the disbursement process involving various Ministries, Departments, and Agencies (MDAs).
He said the Central Bank of Nigeria (CBN) reportedly disbursed the funds to over 4.67 million farmers cultivating crops such as maize, rice, and wheat, using 563 anchors and 24 participating financial institutions.
However, the committee has only received verifiable documentation from nine institutions.
“We are probing how the Central Bank of Nigeria, through the Anchors Borrowers Programme, disbursed about N1.12tn to 4.67 million farmers involved in either maize, rice or wheat farming through 563 anchors,” Okafor stated.
“The CBN should note that we are aware it has about 24 participating financial institutions through which it disbursed these humongous amounts. I am also aware that you (CBN) have written to 24 of them but we have evidence of only nine. Please, note this.”
The committee is also examining how the NIRSAL Microfinance Bank disbursed N215 billion to agribusinesses, and the role of the Bank of Industry in the allocation of N3 billion to 22,120 smallholder farmers through the agriculture value chain financing initiative.
“Secondly, we are probing how NIRSAL disbursed N215bn so far to facilitate agriculture and agribusinesses. Also, the Bank of Industry on how it disbursed N3bn to 22,120 smallholder farmers through the agriculture value chain financing programme,” Okafor added.
He noted that the creation of the Committee on Nutrition and Food Security was part of the legislature’s commitment to complementing executive efforts in ensuring food sufficiency.
“The creation of the 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 nation.”
Speaking at the hearing, Charles Bassey, a representative of NIRSAL Microfinance Bank, pointed to insecurity and natural disasters as significant barriers affecting loan repayment and the success of the scheme.
“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.
“This delayed their seasonal interventions and harvest. Some also pointed to natural disasters such as flooding and drought which affected them.
“A few of them asked for restructuring of the loan facility to allow them time to repay accordingly,” Bassey explained.
Also appearing before the committee, Olushola Obikanye, Group Head of Agric Finance and Solid Minerals at Sterling Bank, said the bank had fully returned all funds received under the scheme.
“The total fund repatriated to the CBN, which 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 N113.49bn. This leaves Sterling Bank with an outstanding of zero naira, zero kobo owing under this scheme,” he said.
The investigation is ongoing as lawmakers continue efforts to trace and recover all misappropriated anchors borrowers programme funds meant for improving food production and security in Nigeria.
