The House of Representatives, through its Committee on Nutrition and Food Security, has initiated a rigorous investigation into the disbursement of the N1.12 trillion allocated to the Central Bank of Nigeria’s Anchor Borrowers Programme (ABP).
The probe also extends to the N215 billion funds disbursed by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and N3 billion distributed by the Bank of Industry (BOI) under the Agriculture Value Chain Financing (AVCF) scheme.
Chairman of the committee, Hon. Chike Okafor, expressed deep concern over discrepancies in fund distribution, noting that while 24 Participating Financial Institutions (PFIs) were expected to handle the ABP funds, lawmakers currently have verified documentation from only nine.
“Our oversight mandate compels us to ensure full transparency and accountability in the implementation of government intervention programmes that target food security and nutrition,” Okafor said during the hearing.
“The CBN reported disbursing N1.12 trillion to 4.67 million farmers engaged in maize, rice, and wheat cultivation, facilitated through 563 anchor companies. Yet, we have credible evidence from just nine out of 24 PFIs involved.”
The investigation also scrutinizes how NIRSAL allocated over N215 billion to support agriculture and agribusiness ventures, alongside the BOI’s distribution of N3 billion to 22,120 smallholder farmers through its value chain financing programme.
Highlighting the challenges facing these agricultural funding schemes, Charles Bassey, representing NIRSAL Microfinance Bank, cited insecurity as a major impediment to effective fund utilization.
“Insecurity has prevented some beneficiaries from accessing their farms after investment, with banditry and clashes involving herdsmen delaying seasonal farming activities,” Bassey said. “Other factors like flooding and drought have also disrupted agricultural cycles, leading some farmers to request loan restructuring.”
Group Head of Agricultural Finance and Solid Minerals at Sterling Bank, Olushola Obikanye, assured the committee of the bank’s compliance, revealing that Sterling Bank had returned over N113 billion to the CBN, clearing any outstanding balances related to the scheme.
“The total funds repatriated, which include both undisbursed and disbursed amounts, stand at N113,490,756,332.54, leaving Sterling Bank with zero outstanding debt under this programme,” Obikanye confirmed.
The establishment of the committee reflects the legislature’s commitment to collaborate with the executive arm and other stakeholders to ensure Nigeria’s food security ambitions are realized transparently and effectively.
