The House of Representatives Committee on Nutrition and Food Security has launched an investigation into the alleged diversion of N1.12 trillion earmarked for the Anchor Borrowers’ Programme (ABP) by various Ministries, Departments, and Agencies (MDAs).
The committee’s probe extends to the NIRSAL Microfinance Bank, scrutinizing its expenditure of N215 billion on agribusinesses.
Additionally, the Bank of Industry is under investigation regarding its disbursement of N3 billion to 22,120 smallholder farmers through the agricultural value chain financing programme.
During the investigative hearing in Abuja, Committee Chairman Chike Okafor expressed dismay that out of 24 financial institutions involved in disbursing the ABP funds, the committee had only received evidence from nine.
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 maize, rice, or wheat farming through 563 anchors.
“The CBN should note that we are aware it has about 24 participating financial institutions through which it disbursed these humongous amounts. I am also aware that you (CBN) have written to all 24, but we have evidence of only nine. Please, note this.
“Secondly, we are probing how NIRSAL disbursed N215 billion so far to facilitate agriculture and agribusinesses, and also the Bank of Industry on how it disbursed N3 billion to 22,120 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 MDAs and government agencies related to food security and nutrition.
“We are involved in the investigations and 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 orders of the House.
Please note that nutrition and food security are twin issues that cannot be separated and have been on the front burner of the Renewed Hope Agenda of the present administration.”
“The creation of the 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 nation.”
Charles Bassey, representing NIRSAL Microfinance Bank, identified insecurity as a major challenge to the successful implementation of the bank’s loan scheme.
According to him, in determining who qualified to benefit from the intervention, they paid close attention to laid-down guidelines.
“It was based on those guidelines that we disbursed these funds. Some of the challenges reported included insecurity. A couple of beneficiaries pointed out that after investing the funds in agricultural business, they were unable to return to their farms because of banditry and herdsmen attacks.
“This delayed their seasonal interventions and harvest. Some also pointed to natural disasters such as flooding and drought which affected them. A few actually asked for restructuring of the loan facility to allow them more time to repay accordingly,” Bassey said.
Sterling Bank’s Group Head of Agric Finance and Solid Minerals, Olushola Obikanye, said the bank has remitted N113.49 billion to the Central Bank of Nigeria (CBN) and is, therefore, not indebted.
“The total fund repatriated to the CBN, which is the cumulative amount of undisbursed funds that were returned and disbursed funds that were returned, stood at N113.49 billion.
“This leaves Sterling Bank with an outstanding balance of zero naira, zero kobo under this scheme,” Obikanye said.
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