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CBN loans to farmers top N1trillion



Introduction of RT200 FX has improved export remittances significantly – CBN

Loans disbursed to Nigerian farmers by the Central Bank of Nigeria (CBN) under the Anchor Borrowers Programme, has reached N1.01 trillion, as of the end of April 2022.

This is according to figures obtained from the apex bank’s reports from members of its Monetary Policy Committee (MPC).

According to the report, the disbursed N29.67bn between January and February 2022, under the Anchor Borrowers’ Programme for the procurement of inputs and cultivation of maize, rice, and wheat, three crops that hitherto were significant concerns of FX demand.

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“These disbursements bring the total under the programme to over 4.52 million smallholder farmers, cultivating 21 commodities across the country, comes to a total of N975.61bn,” it added.

In its latest MPC report on the Anchor Borrowers Programme, the CBN said, “Between April and May 2022, the Bank released the sum of N57.91bn under the Anchor Borrowers’ Programme to 185,972 new projects for the cultivation of rice, wheat, and maize, bringing the cumulative disbursement under the programme to N1.01tn, disbursed to over 4.2 million smallholder farmers cultivating 21 commodities across the country.”

The Development Finance Department of the CBN said in its revised Anchor Borrowers’ Programme Guidelines for September 2021 that insurance cover should be provided under the scheme.

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 periodic report on farm conditions; serve as member of the project management team; and carry out any other responsibilities as may be prescribed by the CBN from time to time.”

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

The document recognised the distinctiveness of smallholder farmers, the ABP transactions dynamics and the project management team in the implementation process.

The CBN outlined eligibility criteria and responsibilities of relevant stakeholders under the programme such as the loan limit, interest rate, tenor and agricultural commodities eligible for financing under 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 broad objective of the ABP was to create economic linkages between smallholder farmers and processors with a view to increasing agricultural output and ensuring food price stability.

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