The Central Bank of Nigeria (CBN) has launched a debt recovery campaign in a bid to force beneficiaries of its Anchor Borrowers’ Programme(ABP) to repay the loans granted to them.
The apex bank will undertake the campaign in partnership with the Rice Farmers Association of Nigeria (RIFAN)
The Anchor Borrowers’ Programme was launched by Federal Government in 2015 to boost agricultural yields, halt food importation and address the negative trade balance in the country.
Guidelines for the programme stipulate that upon harvest, benefiting farmers are to repay their loans with produce (which must cover the loan principal and interest) to an anchor, who in turn pays the cash equivalent to the farmer’s account.
However, CBN’s latest record showed that farmers owed N463 billion as of March.
The Head of CBN’s Development and Finance Unit in Gombe, who confirmed the initiative to journalists in Gombe, said the apex bank would collaborate with RIFAN to recover the loans in the state.
He said: “Although the CBN’s schemes also helped with the crash of the price of rice and created jobs as well as boosted Nigeria’s local capacity to meet demand, it is important farmers continue to pay their loans, so as to encourage the government to accommodate more farmers in the programme in 2022.
“The Anchor Borrowers’ Programme has made a lot of positive impact on our economy, output and even the national food security system has improved however the loan default could deprive many other farmers.”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
FEATURE…The plight of Kwara communities without potable water, govt presence
With a piteous voice and teary eyes, Isiaku Ajarat reflected on some of the challenges she had faced while trekking...
FEATURES: Rise in Monkeypox infection troubling Nigeria’s rural population
In this features, KELECHUKWU IRUOMA goes into the rural communities of Bayelsa State, south-south Nigeria to uncover the plight of...
SPECIAL REPORT: Kwara communities groan as erosion washes away roads, property
For a number of years communities in Ilorin South LGA of Kwara State have had to live with the menace...
SPECIAL REPORT: Lack of legal provisions, cultural sentiments fueling marital r*pe in Nigeria
By Arinze Chijioke In the early days of Sandra Izuckukwu’s marriage in 2019, her husband, Sunday Izuchukwu, did everything she...
INVESTIGATION… LIVES ON THE LINE (IV): Surviving in a dangerous media environment
This investigation is on the unresolved killing of three Nigerian journalists while on assignments between 2019 and 2020. For six...