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FADAMA 111 PROJECT ADDITIONAL FINANCING

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The Nigerian Agricultural Quarantine Service (NAQS)

Monday, 27 March 2017

Anchor borrower programme faces challenges of loan recovery


Image result for image of godwin emefiele
Godwin Emefiele, Central Bank of Nigeria Governor.

*only N600 m out of N14 billion recovered
The Central Bank of Nigeria may have recorded a very low repayment of N14 billion loan given to cooperative farmers under the 2015 dry season Anchor programme that was launched by President Mohammudu Buhari at Kebbi state .

Unlike Growth Enhancement Scheme (GES) which its first tranche of operation in 2012 recorded 100% recovery from farmers through payment at the redemption camp, only N600 million have been recovered in just one state which is Kebbi at the time of filing this report.

Food Farm News’ finding revealed that the subsequent leg of the ABP to increase food production may have been put in a tight corner as monies to be given as soft loan to continue the programme are still pending in the hands of farmers who have sold their produce to the open market at higher prices, without paying back the borrowed money.

It was gathered that many other challenges came up which may have hindered the expected performance of the ABP as stakeholders were asking why the second tranche of the program is yet to take off.

Other questions that people have been asking are –Do farmers comply with delivery process tied to anchor processing companies? What are the steps taken for the cases of non-compliance? What is the procedure of agro suppliers’ payment in ABP? Who pays for the town hall meeting? How timely is the release of funds to meeting farmers’ planting season? How many farmers have Bank Verification Numbers (BVN) and how many states establish farmers’ court to checkmate anomalies?

A source, who spoke on condition of anonymity told our correspondent that although the CBN ABP guidelines for 2016 spelt out a well-articulated programme intended to create a linkage between anchor companies involved in processing and small holders’ farmers of the required key agricultural commodities with provision of inputs in kind and cash for farm labour to boost production, and stabilize inputs to agro processors thereby addressing the country’s negative balance of import food payment, all these are mere paper work as there were many anomally in the implementation process as inputs are not timely delivered as many of the agro dealers did not have financial standing to procure for stock as many of them are being owned by the federal government Growth Enhancement Programme, and the seed companies feel reluctant to release their products on credit.

But findings by FoodFarmNews revealed that the increase in the prices of rice and sorghum in the market places may have caused the breaches within the farmers and the Anchor off takers as the initial agreement of N14, 000.00 per bag of wheat is not too comfortable with the reality of price at the open market which is N42.000.00 just as high demand forpaddy rice by processors shot up based on market demand.

Although the meeting between the flour millers and the wheat farmers scheduled to take place last week could not, but it was gathered that talks to reach amicable agreement is already on going as appeal has gone to Federal Government to intervene in the interest of farmers.

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