The House of Representatives Committee on Nutrition and Food Security has started an investigation into the alleged diversion of N1.12 trillion meant for the Central Bank of Nigeria’s Anchor Borrowers Programme (ABP).
The committee is also looking into how other related funds were handled by several financial institutions.
At the hearing held in Abuja, the Chairman of the committee, Chike Okafor, noted concerns over the disbursement process. According to him, out of the 24 financial institutions that were reportedly involved in distributing funds under the ABP, only nine could be confirmed through available evidence.
He said, “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.
“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.
“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.”
He added, “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.”
A representative of NIRSAL Microfinance Bank, Charles Bassey, identified insecurity as a major challenge to the successful implementation of the bank’s loan scheme.
He said in trying to determine who was qualified to benefit from the intervention, they paid attention very closely to laid down guidelines.
“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 said.
The Group Head, Agric Finance and Solid Minerals, Sterling Bank, Olushola Obikanye, said the bank had remitted N113.49bn to the CBN and was, therefore, not indebted.
“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.
