CBN Disagrees With IMF’s Poor Rating of Anchor Borrowers’ Programme, Says Over 50% Loan Repaid

The Central Bank of Nigeria (CBN) has reacted to the recent poor rating of the International Monetary Fund (IMF) on the Anchor Borrowers’ Programme, faulting its claim.

The CBN stated that as of February 2023, 52.39 percent of the loan which amounts to N503bn has been repaid by the beneficiaries of the programme. This contradicts the IMF’s statement.

Investors King had earlier reported that the International Monetary Fund said only 24 percent of loans offered to farmers under the Anchor Borrowers’ Programme of the CBN have been repaid.

The IMF mentioned that the repayment process is very low and the programme structure weak as CBN allows the farmers to pay in cash or in kind.

The international body further alleged that the beneficiaries were not carefully selected as some used the funds for other purposes instead of agriculture.

In a statement by the Acting Director, Corporate Communications Department, AbdulMumin Isa, on Monday, the apex bank stated that out of the N1.079 trillion disbursed for the programme, N960 billion was due for repayment.

Isa further said that about 4.45 million smallholder farmers had been beneficiaries of the ABP for planting 21 different crops on 6.02 million hectares.

He said, according to the Food and Agriculture Organisation, the ABP has immensely aided the national output of focal commodities, with maize and rice peaking at 12.2 million metric tonnes in 2021 and 9.0 million metric tonnes in 2022.

“It is pertinent to note that the tenor of loans under the ABP is based on the commodity gestation period. For instance, loans granted to farmers cultivating some perennial crops could have up to seven-year tenor.

“The Central Bank of Nigeria remains committed to its developmental mandate of stimulating access to finance for the real sector, particularly agriculture, as it continues to support the Federal Government’s drive for food security and economic growth. Accordingly, the Central Bank of Nigeria continues to welcome applications from eligible Nigerian farmers and firms under the Anchor Borrowers’ Programme,” the acting Spokesperson stated.