The House of Representatives Committee on Nutrition and Food Security has initiated a probe into the N1.12 trillion spent under the Anchor Borrowers Program (ABP).
Along with investigating the Bank of Industry’s distribution of N3 billion to 22,120 smallholder farmers through the Agricultural Value Chain Financing Program, the Committee is closely examining the NIRSAL Microfinance Bank’s payout of N215 billion for agricultural corporations.
The chairman of the Committee, Hon. Chike Okafor, raised alarm during an investigative hearing over the alleged mismanagement of government agricultural interventions and funding across various ministries, departments, agencies, and schemes.
He noted with concern that out of the 24 Participating Financial Institutions (PFIs) involved in disbursing the ABP funds, there was verified documentation from only nine institutions.
“One of our major oversight responsibilities is to ensure that intervention programmes implemented by relevant government bodies related to food security and nutrition are properly executed,” he stated.
Okafor continued: “We are examining how the Central Bank of Nigeria disbursed N1.12 trillion to 4.67 million farmers cultivating rice, maize, and wheat through 563 anchor companies under the ABP.
“The CBN should be aware that while 24 PFIs were involved in disbursing these enormous sums, we only have documentary evidence from nine of them. We understand that letters were sent to all 24 institutions, but only a few have responded appropriately. Some have reportedly tried to reach out.”
He added, “We are investigating how NIRSAL disbursed N215.06 billion to support agriculture and agri-businesses, and how the Bank of Industry disbursed N3 billion to over 22,000 smallholder farmers under the agriculture value chain financing initiative.
Hon. Chike stated that the Committee’s oversight includes monitoring implementation, tracking resource allocations, proposing new legislation, and strengthening existing nutrition and food security laws. While also emphasising that food security and nutrition are interconnected issues central to the current administration’s ‘Renewed Hope Agenda’.
He added that the committee’s establishment represents a legislative effort to collaborate with the executive and relevant stakeholders in addressing food insecurity and malnutrition in Nigeria.
Representing NIRSAL Microfinance Bank, Charles Bassey explained that security challenges significantly impacted the success of their loan initiatives and that the bank strictly adhered to set guidelines in determining eligible beneficiaries.
“Based on those criteria, we released the funds. However, several challenges were encountered. Many beneficiaries could not return to their farms due to insecurity, including banditry and herders’ attacks, which disrupted farming activities and harvests. Others faced natural disasters such as flooding and drought. Some have even requested loan restructuring to repay appropriately,” Bassey explained.
Group Head of Agric Finance and Solid Minerals at Sterling Bank, Olushola Obikanye, stated that the bank had paid back N113.49 billion to the Central Bank of Nigeria in full and had no unpaid obligations under the program.
Obikanye confirmed that N113,490,756,332.54 was returned to the CBN, including undisbursed and repaid disbursed monies. And as a result, Sterling Bank had no outstanding debts under this scheme.
Source: Independence
Image Credit: X
