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Reps to investigate CBN Anchor Borrowers’ programme

The House of Representatives has resolved to investigate the Anchor Borrowers’ Scheme(ABS) of Central Bank of Nigeria (CBN) over non-recovery of N81.5 billion from companies. This was sequel to a unanimous adoption of a motion by Rep. Sergius Ogun (PDP-Edo) at plenary on Thursday. Reps.

Moving the motion, Ogun said that the CBN in line with its mandate, established the scheme which was launched by President Muhammadu Buhari in November 2015. He said that the idea was to create a link between anchor companies involved in processing and Small Holder Farmers (SHFs) of key agricultural commodities.

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Ogun said that the thrust of the ABS was provision of loans to SHFs to boost production of key agricultural commodities like rice, maize, wheat, cotton, roots and tubers crops among others. “Out of the N104.2 billion provided by CBN for the Scheme, a total of N86.6 billion was disbursed to the anchor companies and the sum of N81.5 billion is yet to be recovered from the defaulting anchor companies. “With the non-recovery of the outstanding N81.5 billion other potential small holder farmers who will have been beneficiaries of the scheme are being denied the opportunity to benefit from the scheme,” he said. Reps.

The lawmaker said that the non-recovery of the said balance of the loan from the anchor companies was negatively affecting the overall objective of the scheme. In his ruling, the Speaker, Femi Gbajabiamila mandated the Committees on Agricultural Production and Services and Banking and Currency to investigative the issue and report back within four weeks for further legislative action.

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