By Chukwudi Obasi, Abuja
The House of Representatives Committee on Nutrition and Food Security has commenced an investigation into the N1.12 trillion spent on the Anchor Borrowers Programme (ABP).
The Committee is also investigating the NIRSAL Microfinance Bank for the N215 billion spent on agro-businesses, as well as the Bank of Industry, for disbursing between N3 billion and N22,120 to smallholder farmers through the Agriculture Value Chain Financing Programme.
Chairman of the Committee, Chike Okafor, during an investigative hearing on the alleged misuse of government interventions and agricultural funding by departments, agencies, schemes and programmes of the federal government, raised concern that of the 24 participating financial institutions (PFIs) who disbursed the amount for the APB, they only had evidence of none of the institutions.
He said that one of the key oversight mandates of the Committee is to ensure the proper implementation of intervention programmes by relevant government ministries and agencies related to food security and nutrition.
He said, “We are probing how the Central Bank of Nigeria through the Anchors Borrowers Programme disbursed about N1.12 trillion to 4.67 million farmers involved in either maise, rice or wheat farming through 563 anchors.
“The CBN should note that we are aware that you have about 24 participating financial institutions (PFIs) through which you disburse these humongous amounts. I am also aware that you have written to 24 of them, but we have evidence of only nine. So please note. Additionally, some of those PFIs have attempted to make contact.
“Second point, we are probing how NIRSAL disbursed N215, 066, 982, 074.50 so far to facilitate agriculture and agribusinesses. Additionally, the Bank of Industry disbursed N3 billion to 2,120 smallholder farmers through the Agriculture Value Chain Financing Programme.
“One of the key oversight mandates of the Committee on Nutrition and Food Security is to ensure proper implementation of Intervention programmes by relevant Ministries, Departments and Agencies (MDAs) and agencies of government related to food security and nutrition.
“Investigations, monitoring of resource allocation, advancement of new laws, and strengthening of existing ones, among others, on matters related to nutrition and food security.
“These are comprehensively contained in the Committee’s jurisdiction as captured in the standing order of the House. Please note that nutrition and food security are twin issues that cannot be separated and have been at the forefront of the present administration’s renewed hope agenda.
“The creation of this committee on Nutrition and Food security is a legislative response to join forces with the executive arm of government and other stakeholders to tackle these issues and make Nigeria a food-secured and nourished populace,” he said.
A representative of NIRSAL Microfinance Bank, Charles Bassey, stated that insecurity was a significant challenge to the successful implementation of their loan scheme.
He said that in trying to determine who was qualified to benefit from the intervention, they paid very close attention to the laid-down guidelines.
“It was based on those guidelines that we disbursed these funds. Some of the challenges that they have written about include insecurity challenges. A couple of them pointed out that after investing the funds in an agricultural business, they were unable to return to the farms due to the experience of banditry and herders.
“These delayed their seasonal interventions and harvesting. Some also pointed to natural disasters, such as flooding and drought, which affected them. A few of them asked for restructuring of the loan facility to allow them time to repay accordingly,” Bassey said.
Group Head, Agric Finance and Solid Minerals, Sterling Bank, Olushola Obikanye, stated that they had repatriated N113,490,756,332.54 to the CBN and were not owing under the scheme.
