The House of Representatives is probing alleged Agricultural Fund Diversion of N1.12 trillion from the CBN’s Anchor Borrowers Programme

The alleged Agricultural Fund Diversion of over N1.12 trillion, allocated for the Central Bank of Nigeria’s (CBN) Anchor Borrowers Programme (ABP), is now under investigation by the House of Representatives Committee on Nutrition and Food Security.

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This initiative was designed to support smallholder farmers nationwide.

During an investigative hearing held on Tuesday in Abuja, the committee expressed significant concern over the lack of transparency and accountability in the disbursement of these funds by participating Ministries, Departments, and Agencies (MDAs).

Hon. Chike Okafor, Chairman of the committee, disclosed that while the programme reportedly involved 24 financial institutions, only nine have provided sufficient evidence of their participation and fund utilisation.

The CBN, under the ABP, reportedly disbursed N1.12 trillion to approximately 4.67 million farmers engaged in rice, maize, and wheat production, in collaboration with 563 anchor companies.

In addition to probing the MDAs, the committee is scrutinising the Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance Bank over the expenditure of N215 billion on agribusinesses.

Lawmakers are also examining the Bank of Industry’s role in disbursing N3 billion to 22,120 smallholder farmers through the Agriculture Value Chain Financing Programme.

Okafor emphasised the importance of the probe, stressing its role in ensuring food security and protecting the integrity of public funds intended for the nation’s agricultural transformation.

“The CBN should note that we are aware it has about 24 participating financial institutions through which it disbursed these humongous amounts,” Okafor stated.

“I am also aware that you (CBN) have written to 24 of them but we have evidence of only nine. Please, note this.”

With this remittance, Sterling Bank has no outstanding balance — zero naira, zero kobo— under the programme.

He added, “Secondly, we are probing how NIRSAL disbursed N215 billion so far to facilitate agriculture and agribusinesses. Also, the Bank of Industry on how it disbursed N3 billion to 22,120 smallholder farmers through the agriculture value chain financing programme.”

The committee’s establishment represents a legislative effort to collaborate with the executive and other stakeholders, addressing food related challenges and ensuring Nigeria becomes a food secure and well nourished nation.

Meanwhile, Charles Bassey, a representative of NIRSAL Microfinance Bank, cited insecurity as a major obstacle to the effective implementation of the bank’s loan scheme.

He explained that the bank strictly adhered to established guidelines when selecting beneficiaries for the intervention.

“It was based on those guidelines that we disbursed these funds. Some of the challenges that they have written about include insecurity challenges. Some beneficiaries explained that after investing their funds in agricultural ventures, they were unable to return to their farms due to incidents of banditry and attacks by herdsmen.”

Bassey noted this disrupted seasonal farming activities and affected harvests. He added that natural disasters such as flooding and drought were also major setbacks.

A number of beneficiaries have appealed for a restructuring of the loan facility to allow more time for repayment.

Meanwhile, Olushola Obikanye, Group Head of Agric Finance and Solid Minerals at Sterling Bank, stated that the bank had remitted a total of N113.49 billion to the Central Bank of Nigeria (CBN), clearing its obligations under the scheme.

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“The amount includes both undisbursed funds that were returned and disbursed funds recovered,” Obikanye confirmed.