*Abuja, Nigeria – September 1, 2023* – Nigeria’s ambitious Anchor Borrowers’ Loan Scheme, established by the Central Bank of Nigeria (CBN) to boost agricultural production in the country, is facing a significant challenge due to the failure of beneficiaries to repay the loans upon maturity. This has resulted in a substantial amount of government funds being held up and unavailable for other farmers, according to investigations by Saturday Vanguard.
Since the inception of the Anchor Borrowers’ Loan Scheme, the CBN has disbursed over N1.1 trillion to beneficiaries, including commercial and microfinance banks, state governments, farmers’ associations, individuals, and corporate entities. However, only slightly more than N546 billion has been repaid, leaving an outstanding balance of N577 billion.
This substantial amount being held up by borrowers has reportedly raised concerns within the Presidency, including President Bola Tinubu, who has been briefed on the situation multiple times. President Tinubu is reportedly upset that such a significant sum, which could support other farmers, is being withheld by some beneficiaries.
Security agencies have been directed by the President to take necessary measures to recover the substantial amount of government money from defaulters by September 18, 2023. The aim is to make these funds available to genuine farmers seeking loans to enhance food production.
During a meeting in Abuja, the President was informed that a subsidiary of the CBN and a commercial bank had diverted N255 million intended for farmers and others in need of loans for agricultural production. Some beneficiaries have also refused to refund the loans as stipulated, claiming they did not generate sufficient returns on their investments and needed more time for repayment.
Top officials from several banks have been interrogated regarding the loan defaults, with many admitting their involvement and expressing willingness to take necessary steps to repay the loans. The borrowers have also received notices to refund the outstanding loan amounts.
The Anchor Borrowers’ Loan Scheme was designed to support various farmers’ groups, including the Maize Farmers’ Association, Soya beans and Cotton Farmers’ Association. However, repayment statistics indicate that some of these groups have struggled to meet their repayment obligations, with a significant portion of the loans still outstanding.
