The House of Representatives Committee on Nutrition and Food Security has launched an investigation into the alleged mismanagement and diversion of N1.12 trillion disbursed under the Central Bank of Nigeria’s Anchor Borrowers’ Programme (ABP).
At the inaugural investigative hearing held on Tuesday in Abuja, Chairman of the Committee, Hon. Chike Okafor, expressed serious concern over the opacity surrounding the disbursement of funds by several Ministries, Departments, and Agencies (MDAs), as well as participating financial institutions.
Okafor disclosed that although the Central Bank claimed to have engaged 24 financial institutions to disburse the funds to over 4.6 million smallholder farmers cultivating rice, maize, and wheat through 563 anchors, documentation had only been provided for nine of these institutions.
“We are probing how the Central Bank of Nigeria, through the Anchor Borrowers Programme, disbursed about N1.12 trillion to 4.67 million farmers involved in maize, rice or wheat farming,” Okafor said. “We are aware that the CBN listed 24 participating financial institutions, but only nine have submitted evidence of participation.”
The committee is also scrutinising the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance Bank over the disbursement of N215 billion to agricultural enterprises, as well as the Bank of Industry’s handling of N3 billion allocated to 22,120 smallholder farmers under the agriculture value chain financing initiative.
Okafor noted that the probe is part of the legislature’s strategic commitment to improving food security and ensuring transparency in agricultural funding. “The creation of this committee is a direct response to the growing concern over food security, and we are determined to collaborate with all stakeholders to make Nigeria a food-secure and nourished nation,” he said.
During the hearing, Charles Bassey, a representative of NIRSAL Microfinance Bank, attributed the underperformance of some loan beneficiaries to rising insecurity. He said many farmers were unable to access their farmlands due to incidents of banditry and herder-related violence, while others were impacted by natural disasters such as flooding and drought.
“In trying to determine who qualified to benefit from the intervention, we followed the approved guidelines,” Bassey said. “However, some farmers could not harvest or repay due to insecurity and environmental challenges. Some have even requested loan restructuring to enable them to repay in due course.”
Also testifying, the Group Head of Agric Finance and Solid Minerals at Sterling Bank, Olushola Obikanye, affirmed that the bank had fully repaid all funds disbursed under the scheme. He stated that a total of N113.49 billion had been repatriated to the CBN, leaving the bank with no outstanding liabilities.
“The amount returned includes both undisbursed and repaid disbursed funds. Sterling Bank currently owes zero naira under the scheme,” Obikanye clarified.
The committee vowed to continue its investigation until full accountability is established, while reiterating its resolve to ensure that agricultural financing serves its purpose of driving national food security and economic growth.
