The Central Bank of Nigeria’s Anchor Borrowers’ Loan Scheme, aimed at boosting agricultural production in the country, has encountered a setback as beneficiaries are unable to repay the loans on schedule. This has resulted in a significant amount of government funds being held up, preventing others from benefiting from the scheme. According to Saturday Vanguard’s investigation, out of the N1.1 trillion disbursed by the CBN, only N546 billion has been repaid, leaving a balance of N577 billion unaccounted for.
The large sum held by borrowers, including banks, state governments, farmers’ associations, individuals, and corporate entities, has raised concerns in the Presidency. There is a fear that the program’s objectives may be compromised if the outstanding funds are not promptly recovered.
Reliable sources have revealed that President Bola Tinubu, who has been briefed on the situation multiple times, is deeply disappointed that such a substantial amount of money, which could have provided relief to other farmers, is being withheld by some beneficiaries.
In response, the President has summoned top security agencies to take appropriate actions to recover the government funds from the defaulters by September 18, 2023. This is to ensure that the funds are made available to genuine farmers seeking secure loans for increased food production.
During a meeting with security agencies in Abuja, it was brought to the President’s attention that one of the CBN’s subsidiaries was among the defaulting banks, withholding vital cash intended for farmers’ production improvement and food security.
At the meeting, held earlier in the day at the Presidential Villa, it was revealed that the CBN’s subsidiary, along with a commercial bank, had fraudulently diverted N255 million that was meant to be disbursed to farmers and other loan applicants. The funds were secured from the lender but were neither distributed nor returned to the CBN.
Some borrowers have refused to repay the loans as agreed, citing low returns on their investments and requesting more time to fulfill their obligations to the apex bank, disregarding the terms of their signed agreements.
An anonymous security official confirmed that many bank directors and managers have been interrogated regarding the loan scandal, with several admitting to their involvement and expressing willingness to repay the loans. All defaulters and banks have been notified, and those summoned and questioned have committed to refunding the outstanding amounts by the September 18 deadline.
Beneficiaries of the Anchor Borrowers’ Programme, including the Maize Farmers’ Association, Soya Beans, and Cotton Farmers’ Association, have taken significant loans from the CBN. However, repayment data shows that while the Maize Producers Association has refunded N23 billion out of their N39 billion loan, Cotton farmers have repaid N5 billion out of their N14 billion loan.
When contacted, spokespersons for most security agencies in Abuja declined to comment on the President’s directive to recover the funds and return them to the CBN. Dr. Peter Afunanya, spokesperson for the DSS, stated that it is not unusual for the President to order security agencies to act in matters of national security.
