The House of Representatives Committee on Nutrition and Food Security on Tuesday opened a probe into the disbursement of N1.12 trillion meant for the Anchors Borrowers Programme (ABP), alleging diversion of funds by some Ministries, Departments, and Agencies (MDAs).
The investigative panel is also examining how NIRSAL Microfinance Bank disbursed N215 billion for agricultural businesses and how the Bank of Industry distributed N3 billion to 22,120 smallholder farmers under its agricultural value chain financing programme.
The chairman of the committee, Chike Okafor, raised concerns during the investigative hearing in Abuja that of 24 participating financial institutions involved in disbursing the N1.12 trillion, the committee had received information from only nine.
He said, “We are probing how the Central Bank of Nigeria, through the Anchors Borrowers Programme, disbursed about N1.12 trillion to 4.67 million farmers involved in maize, rice, or wheat farming through 563 anchors.”
He insisted the CBN should account for all participating financial institutions.
“We are also investigating NIRSAL’s disbursement of N215 billion to facilitate agricultural businesses and the Bank of Industry’s disbursement of N3 billion to 22,120 smallholder farmers through agricultural value chain financing.”
He explained that oversight responsibilities of the committee include investigating and monitoring the implementation of food-related interventions, strengthening legislation, and making sure resources are properly utilised to tackle food insecurity and malnutrition in the country.
“It is a legislative response to combine efforts with the executive and stakeholders to make sure we become a food-secure and well-nourished nation.”
A representative of NIRSAL Microfinance Bank, Charles Bassey, explained that insecurity and natural disasters were key factors affecting the implementation of the fund.
“It was based on laid-down guidelines that we disbursed these funds. Some beneficiaries were forced to abandon their agricultural businesses due to bandit attacks and herders’ attacks. There were cases of flooding and drought as well. Some asked for a restructuring of their facilities to allow more time for repayment.”
The Group Head of Agric Finance and Solid Minerals at Sterling Bank, Olushola Obikanye, insisted the bank was not indebted to the CBN, noting it had already remitted a total of N113.49 billion — representing undisbursed and recovered funds — back to the CBN.
He confirmed, “The total fund repatriated to the CBN stood at N113.49 billion. That leaves Sterling Bank with an outstanding balance of zero under this scheme.”
