The Central Bank of Nigeria (CBN) has pledged to increase the funding of the Anchor Borrowers Programme (ABP) due to the success of the programme in the North East.
CBN’s Deputy Director of Development and Finance, Mr Edwin Ezelu made the promise in Yola at a formal ceremony marking the repayment of the ABP loan given to the North East Commodity Association (NECAS).
“This is in light of the success of the ABP, with the repayment of N1.5 billion and the cultivation of 37,904 100kg. bags of maize, sorghum, rice and soyabeans, which is equivalent to 3,709 tonnes, by farmers under NECAS,” he said.
Ezelu reiterated the commitment of the CBN in ensuring the timely release of funds to farmers, particularly those who had proved their worth, adding that the bank’s resolve was aimed at facilitating the achievement of the federal government’s plans to boost the country’s food security and agricultural value chain.
“Since 1977, CBN has been carrying out interventions in the agricultural development of Nigeria.
“As part of efforts to tackle the challenges confronting agriculture, agribusiness and small holder farmers, who are the drivers of the nation’s agricultural value chain, the Anchor Borrowers Programme was born,” he said.
Ezelu stressed that the CBN would not relent in its efforts to support the country’s farmers, saying that ABP was part of bank’s strategies aimed at creating scientific solutions to the challenges facing Nigeria’s food security.
He said that the North East success story would serve as an eye-opener to farmers, while encouraging them to embrace the programme in efforts to expand their farming activities and boost food production.
“It has become imperative because it is aimed at creating economic linkages between small holder farmers and reputable large-scale processors, with a view to increasing agricultural output and significantly improving capacity utilisation of integrated mills,” he said.
Also speaking, Executive Director, Credit and Empowerment (North-Central), Bank of Agriculture (BOA), Mr Ameh Owoicho said that the main goal of BOA was to assist farmers in their efforts to ensure food security and feed a rising population.
He added that the bank also wanted to improve the income of small holder farmers, who comprised the largest segment of the country’s farmers.
Owoicho, therefore, expressed the bank’s commitment to disbursing ABP funds or any other agricultural funds approved by the CBN, within five days of receipt of applications from the apex bank.
“I assure the farmers, who are under the BOA window of ABP programmes, that they would have access to their funds without any delay once the drawdown conditions have been met.
“BOA is concerned with the timely disbursement of funds to farmers very seriously, as this helps to ensure timely repayment of loans, which is also a critical component of its mandate,” he said.