CBN Lends N976 Billion To Farmers

The Central Bank of Nigeria has lent N975.61 billion to farmers across the country under the Anchor Borrowers’ Programme.

Figures obtained from the CBN showed that the amount was released to over 4.52 million smallholder farmers as of February 2022.

The CBN said, “The committee reviewed the performance of the bank’s various interventions to stimulate productivity in manufacturing, industry, agriculture, energy, infrastructure, healthcare, and micro, small and medium enterprises.

“Between January and February 2022, the bank disbursed N29.67 billion under the Anchor Borrowers’ Programme for the procurement of inputs and cultivation of maize, rice, and wheat, three crop.

"The guidelines said the underwriters should provide insurance cover for the projects, ensure timely processing and settlement of claims, provide technical assistance to farmers on insurance policies, and monitor projects for early warning signals or red flags."

The guidelines further said that they should “render a periodic report on farm conditions; serve as members of the project management team; and carry out any other responsibilities as may be prescribed by the CBN from time to time.”

The ABP transactions dynamics and the project management team in the implementation process also recognised the distinctiveness of smallholder fatmers.

It also adopted measures to ensure that smallholder farmers are protected

The CBN explained that, for financing under the programme, the  eligibility criteria and responsibilities of relevant stakeholders under the programme include the loan limit, interest rate, tenor and agricultural commodities

The revised guidelines addressed current realities and developments in the ABP, with the aim of promoting best practices in the implementation of the programme.

It also outlined the implementation windows and operating models under each window type.

The CBN said the guidelines were aimed at improving the programme’s implementation process and enhancing stakeholders’ participation for the realisation of the ABP’s objective.

It noted that the major objective of the ABP is to create economic linkages between smallholder farmers and processors in order to improve agricultural output and ensuring food price stability.