CBN Raise Concerns Famers Are Not Repaying Loans, As They Believe It Is Their Own Cut Of The ‘National Cake'

CBN Raise Concerns Famers Are Not Repaying Loans, As They Believe It Is Their Own Cut Of The ‘National Cake'

  • Nigerian farmers are not repaying thier loans and it is becoming a source of concerns for the Central Bank of Nigeria
  • In 2015, CBN kicked off the Anchor Borrowers’ Programme (ABP) to help farmers access finance easily in a bid to boost local production
  • CBN recently announced that between January and February 2022, it disbursed N29.67bn under the ABP

The Central Bank of Nigeria (CBN) has appealed to farmers who defaulted in paying back the loans obtained under the Anchor Borrowers’ Programme (ABP) to pay back.

Mr Sadeeq Ajayi, in CBN Development Finance Office, made the appeal on Wednesday in Ibadan at the Agribusiness Innovation Clinic titled “Fostering Innovation and Collaboration Across the Agricultural Value Chain” was organised by the Global Alliance for Improved Nutrition (GAIN).

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Ajayi in his addressed said that majority of farmers in Oyo State, who benefited from the scheme, have not repaid their loans, NAN reports.

National cake, Anchor Borrowers Programme
CBN believes the ABP can boost local production Credit: cnms
Source: Facebook

Lamenting the inability of the apex bank to recover the loans from the defaulting farmers said it is a threat to the scheme which was launched in 2015.

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Ajayi added that that it has prevented other farmers from accessing the facility.

His words:

“While the Anchor Borrowers’ Programme has recorded some level of success, the failure of farmers to repay the loans has, however, been a major setback.
“Many of the farmers refused to pay back their loans due to misconception that since CBN is the lender, the loan is a ‘national cake’ and they do not have to pay back what they consider theirs as citizens.

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“This attitude has made it difficult for other farmers, who also want to access the loan, to benefit from the scheme"

Ajayi begged stakeholders, traditional rulers to appeal to the defaulting farmers to promptly repay the loans for the sake of others.

He said:

“Of course, we are engaging various stakeholders and we expect the narrative to change very soon so that more people can have access to the fund."

2023: PDP demands immediate arrest, prosecution of CBN Gov Emefiele

Meanwhile the PDP had reacted to reports that Godwin Emefiele purchased the APC presidential nomination form.

The party's spokesman, Debo Ologunagba, said Emefiele is insulting the sensibilities of Nigerians by seeking the office of the president while still serving as governor of the apex bank.

The opposition accused the CBN governor of abuse of office and called on security agencies to arrest and prosecute him.


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