The House of Representatives Committee on Nutrition and Food Security has opened an investigation into the insurance structure of the ₦1.12 trillion Anchor Borrowers’ Programme, amid concerns over alleged mismanagement and weak coordination in agricultural intervention schemes.
The probe, led by Committee Chairman Chike Okafor, is part of a wider legislative review into how Ministries, Departments and Agencies (MDAs) and participating financial institutions implemented federally backed agricultural funding initiatives.
At Thursday’s hearing, the Nigerian Agricultural Insurance Corporation (NAIC) disclosed that it insured 207,514 farmers under the programme, with total coverage valued at ₦109 billion.
A representative of the NAIC Managing Director, Dayo Babaronti, told lawmakers that the Central Bank of Nigeria (CBN) deviated from the original design of the Anchor Borrowers’ framework, which had made NAIC the sole insurer for participating farmers.
According to him, the CBN later engaged additional insurance providers, including Veritas Kapital Insurance and Leadway Insurance, contrary to the initial arrangement.
Both Veritas Kapital Insurance and Leadway Insurance were, however, absent from the hearing.
Babaronti further told the committee that NAIC’s participation represented just about 12 per cent coverage of the overall scheme.
He also said that under the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending Plc (NIRSAL Plc) ₦250 billion agricultural financing facility, NAIC insured only ₦8.25 billion worth of exposure.
“For the ₦250 billion facility designed to support smallholder farmers nationwide, NAIC’s insurance cover stood at ₦8.25 billion,” he said.
He added that the corporation provided only ₦715 million cover for 80 hectares of ginger farms out of ₦1.6 billion allocated to that segment of the programme.
On the Bank of Industry’s Agro and Food Processor Scheme, Babaronti said NAIC was not assigned any beneficiaries to insure, contrary to the programme’s intended structure.
Following the presentation, Okafor said the committee would summon NAIC again, citing complaints from farmers and commodity groups over inadequate insurance coverage.
He also criticised the late submission of documents by the agency, noting that lawmakers did not have enough time to properly examine them before the session.
Okafor reaffirmed the House’s determination to uncover gaps affecting the effectiveness of government agricultural interventions, stressing that preliminary findings pointed to poor alignment between policy design and implementation.
He added that key stakeholders, particularly farmers and commodity associations, appeared to have been sidelined in the design and execution of the Anchor Borrowers’ Programme.
“The reason why we are here is that the programmes did not succeed 100 per cent. If they had succeeded, we would not be here,” he said.
The investigation follows a House resolution adopted on July 1, 2025, mandating committees on Nutrition and Food Security, Agricultural Production and Services, Agricultural Colleges and Institutions, and Finance to scrutinise the utilisation of agricultural intervention funds across relevant agencies.
Lawmakers expressed concern that despite trillions of naira committed to agricultural schemes over the years, outcomes in food production, value chain development, and farmer support have remained below expectations.
They also alleged that some funds may have been misapplied or poorly coordinated across agencies, including those operating outside the supervision of the Federal Ministry of Agriculture and Food Security.
The current hearing focuses on the insurance component of the Anchor Borrowers’ Programme, which lawmakers say is central to protecting farmers and ensuring accountability in public agricultural financing.