The House of Representatives has directed the Managing Director of the Bank of Agriculture (BOA), Alwan Ali Hassan, to provide details of the N77.179 billion outstanding payment on the principal of the Anchor Borrowers Programme (ABP) agricultural loans, the amount disbursed and recoveries made.
This was the ruling by the chairman of the Committee on Agricultural Production and Services, Muntari Dandutse (APC, Katsina), following a motion by a member of the committee, Awaji-inombek Dagomie Abiante (PDP, Rivers), during the public hearing on eight bills passed by the House.
The lawmaker posited that the document presented by the BOA MD was not complete as there were many vague submissions that needed more clarification.
The chairman, therefore, asked the MD to provide all the needed documents that would shed more light, especially on the disbursement of funds, the beneficiaries, as well as outstanding repayments.
The MD, while making his submissions earlier, disclosed that since the commencement of the Anchor Borrowers Programme in November 2015, N91.872 billion had been disbursed as of October 31, 2021.
He, however, disclosed that N14.678 billion has been repaid, leaving an outstanding repayment of N77.179 billion on the principal as of October 2021.
He said: “Bank of Agriculture is the first participating Financial Institution (PFI) that started the ABP with the launching of the pilot programme in November 2015 in Kebbi State by the President and Commander-In-Chief in an effort to support the Federal Government of Nigeria (FGN) and Central Bank of Nigeria (CBN) to reposition Nigeria’s agriculture through ABP”.
He disclosed that the Anchor Borrowers Programme is facing challenges due to insecurity in many parts of the country where the beneficiaries are carrying out their activities as well as other factors.
The challenges are leading to “farmers’ inability to concentrate on their farms. Specifically, this includes herdsmen attacks, armed robbery, and kidnappings,” he said.
The MD added that there have also been cases of farm loss due to flooding, early cessation of rain, and drought.
His submission raised dust over the amount that remained to be repaid by the beneficiaries of the loans.
In another appearance before the House Committee on Public Accounts, the committee demanded the full list of beneficiaries that had refused to pay up their debts to the bank.
The Chairman of the committee, Oke gave the directive adding that the committee would summon the affected debtors and encourage them to pay their debts to enable the bank to function and discharge its mandate.
He threatened that if they failed to pay or show commitment, the committee would publish their names in the national dailies.
