March 19, 2020

Reps to probe CBN Anchor Borrowers’ Programme

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The House of Representatives on Thursday resolved to investigate the Central Bank of Nigeria (CBN) Anchor Borrowers’ Programme over non-recovery of N81.5 billion from companies.

The House resolution followed the unanimous adoption of a motion by Sergius Ogun on the matter.

He said the CBN in line with its mandate, established the scheme which was launched by President Muhammadu Buhari in November 2015.

According to him, the idea was to create a link between anchor companies involved in the processing and Small Holder Farmers (SHFs) of key agricultural commodities.

Ogun said the thrust of the Anchor Borrowers’ Programme was the provision of loans to SHFs to boost production of key agricultural commodities like rice, maize, wheat, cotton, roots, and tubers crops among others.

He said: “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 smallholder farmers who will have been beneficiaries of the scheme are being denied the opportunity to benefit from the scheme.”

The lawmaker said the non-recovery of the funds from the anchor companies was negatively affecting the overall objective of the scheme.

In his ruling, the Speaker of the House, Femi Gbajabiamila, mandated the Committees on Agricultural Production and Services and Banking and Currency to investigate the issue and report back within four weeks for further legislative action. (NAN)