The ambitious programme has run into a glitch due to the inability of beneficiaries to repay loans granted them, thereby holding up government funds and denying other farmers from tapping into the scheme.
Findings show that out of the N1.1 trillion disbursed by the CBN to the beneficiaries since inception, only a little above N546 billion has been repaid, leaving a balance of N577 billion unaccounted for.
The debtors are said to include commercial and microfinance banks, state governments, farmers’ associations, individuals and corporate entities.
According to competent sources, President Tinubu has been briefed severally on the situation and is upset that such amount of money, which could give succor to other farmers, is being withheld by some of the beneficiaries.
A source said that the President had directed top security agencies in the country to take necessary measures to recover the money, on or before September 18, 2023.
“The president was very upset when he was told that one of the CBN’s subsidiaries was among the defaulting banks, holding up vital cash that was meant for farmers to improve their production and ensure food security in the country”.
At the meeting, said to have taken place at the Presidential Villa, the president was told that a subsidiary of the CBN and a commercial bank diverted N255 million they were supposed to give out to farmers.
Also, the CBN subsidiary and another commercial bank that acted as intermediaries between borrowers and the CBN, reportedly diverted N255 million, which they secured from the lender but refused to disburse to the borrowers.
It was gathered that some of the beneficiaries had blamed their inability to repay the loan on “poor returns” on their investments and needed more time to pay back.
A top security official said many banks’ directors and managers had been interrogated, and most of them had admitted to securing the said loans and failed to pay back.
“I can tell you authoritatively that we have written to all the defaulters and many bank officials have confessed of their role in the huge loan scandal and they are willing to take necessary steps to pay back the loans.
“We have also written to all the debtors and some of the banks, whose top managers we have already summoned and grilled.
“They have assured us that they will refund the cash outstanding in their names on or before the September 18 deadline,” the source added.
Some of the farmers’ groups which took part in the Anchor Borrowers’ Programme, include Maize Farmers’ Association, Soya beans and Cotton Farmers’ Association.
Findings showed that the Maize Producers Association took a loan of N39 billion from the CBN under the ABP and has been able to refund a total of N23 billion.
The Cotton farmers association however paid back only N5 billion out of the N14 billion loan received under the ABP.
