Farmers who have not paid back loans obtained under the Anchor Borrowers’ Programme (ABP) have been urged to do so by the Central Bank of Nigeria (CBN).
The appeal was made in Ibadan at the Agribusiness Innovation Clinic by Mr Sadeeq Ajayi of the CBN Development Finance Office.
The clinic, titled “Fostering Innovation and Collaboration Across the Agricultural Value Chain,” was organised by the Global Alliance for Improved Nutrition, according to the Nigerian News Agency (NAN) (GAIN).
According to NAN, ABP is an agricultural loan scheme launched by the Federal Government in 2015 through the Central Bank of Nigeria (CBN) to provide loans (in kind and cash) to small holder farmers in order to increase agricultural production, create jobs, reduce food import bills, and conserve foreign reserves.
The majority of farmers in Oyo State who benefited from the scheme, according to Ajayi, have not repaid their loans.
He claimed that the apex bank’s inability to recover loans from defaulting farmers had jeopardised the scheme, and that it had prevented other farmers from using it.
“While the Anchor Borrowers’ Program has had some success, farmers’ failure to repay their loans has been a major setback.”
“Many of the farmers refused to repay their loans because they believed that because the CBN was the lender, the loan was a ‘national cake,’ and they did not have to repay what they considered to be theirs as citizens.”
“This attitude has made it difficult for other farmers who want to take advantage of the loan to do so,” he said.
Stakeholders, including traditional rulers, should urge defaulting farmers to repay their loans quickly for the sake of others, according to Ajayi.
“Of course, we’re talking to a lot of people,” he said, “and we expect the narrative to shift soon so that more people can get access to the fund.”
Mr Olasukanmi Olaleye, the Oyo State Commissioner for Trade, Industry, Investment, and Cooperatives, lauded GAIN’s initiative to combat malnutrition in the country in his keynote address.
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Mr Mukaila Oladipo, a Deputy Director in the ministry, represented Olaleye, who stated that food fortification is one of the safest, most effective, and cost-effective ways to address the country’s micronutrient gaps.
Mr. Godwin Ehiabhi, a Senior Project Manager with GAIN Nigeria, also stated that improved access to safe and nutritious food would help to reduce the country’s high malnutrition rate.
