House of Reps probes alleged diversion of N1.12trillion anchor borrowers fund

The House of Representatives Committee on Nutrition and Food Security has launched an investigation into the alleged diversion of over N1.12 trillion allocated for the Anchor Borrowers Programme ,ABP, initiated by the Central Bank of Nigeria.

The programme designed to support smallholder farmers across the country, under the Buhari’s administration was grossly mismanaged with a large chunk of the fund unaccounted for.

The committee, at an investigative hearing held on Tuesday in Abuja, affirmed that the disbursements of the fund by Ministries, Departments, and Agencies,MDAs, lacked transparency and accountability.

The Chairman of the committee, Hon. Chike Okafor, 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, was said to have disbursed N1.12 trillion to about 4.67 million farmers engaged in rice, maize, and wheat production, in collaboration with 563 anchor companies.

Additionally, the committee is also scrutinising the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending ,NIRSAL, Microfinance Bank over the expenditure of N215 billion on agrobusinesses. 

The lawmakers are also examining the Bank of Industry’s role in the disbursement of N3billion to 22,120 smallholder farmers through the Agriculture Value Chain Financing Programme.

Okafor emphasised the importance of the probe in ensuring food security and protecting the integrity of public funds meant 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.

“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 N215billion so far to facilitate agriculture and agribusinesses. Also, the Bank of Industry on how it disbursed N3billion to 22,120 smallholder farmers through the agriculture value chain financing programme.”

He added that the establishment of the Committee on Nutrition and Food Security is a legislative effort to collaborate with the executive arm of government and other stakeholders in addressing food-related challenges and ensuring Nigeria becomes a food-secure and well-nourished nation.