No Funds Diverted: NAIDA Refutes Allegations in NAGS-AP Project

The Nigeria Agro Input Dealers Association (NAIDA) has strongly refuted recent media reports alleging fraud in the $134 million African Development Bank (AfDB)-funded National Agricultural Growth Scheme – Agro Pocket (NAGS-AP) programme.

In an official rejoinder issued by NAIDA President, Kabiru Fara, the association described the report published by Factsheet.ng as “misleading and unsubstantiated.” Fara emphasized that while delays in payments to agro-input suppliers have occurred, these should not be misconstrued as evidence of fraud or fund misappropriation.

“The delays are a result of due diligence processes, including bureaucratic verification, auditing, and compliance with the AfDB’s stringent procurement and financial management standards,” the statement explained. NAIDA confirmed that a number of payments have already been processed, while the remainder are in the final stages of reconciliation.

The association reiterated that NAGS-AP is under tight financial oversight by the AfDB, and all disbursements are documented and fully auditable. It urged media outlets to seek factual clarification before publishing potentially damaging allegations that could undermine public confidence and tarnish reputations.

NAIDA reaffirmed its commitment to transparency and accountability, assuring stakeholders that a detailed payment schedule will be made public soon to ensure clarity and build trust.

Read the Rejoinder:

1. Denial of Fraudulent Conduct / Misuse of Funds

The article’s key claim is that senior government officials “diverted” funds allocated for payment to agro-input suppliers. We categorically deny any act of fraudulent diversion.

No credible evidence has been presented that any official has personally benefited from funds earmarked for suppliers and Agro Dealers. The article’s assertion that “money earmarked for payment to agro dealers [was] used for other items ‘not captured in the programme’” remains unsubstantiated. The suggestion that this was done in bad faith or deliberately is false.

2. Status of Payments, Delays, and Context

It is true that there have been delays in payments to some suppliers and Agro Dealers. But delays do not equate to fraud or misuse. The causes of delays are complex and include bureaucratic verification processes, reconciliation of delivery reports, quality checks, and ensuring compliance with the procurement standards mandated by AfDB and federal regulations

The article states that suppliers∕ Agro Dealers have not been paid "15 months after they delivered inputs" and that “six months after the funds were released, the agro-dealers have not been paid.” These timescales are misleading or incorrect in parts. Some payments have been processed, and  others are in the final stages of documentation and reconciliation. Some of the delays are due to issues beyond the agency’s direct control (e.g., late submission of required documentation by some supplier  or banking / auditing delays).

NAGS-AP affirms that once suppliers meet all contractual obligations, verification, and quality standards and submit the required documentation, payments are being, and will be, made as per the  agreed schedule. No funds have been withheld arbitrarily.

3. Oversight, Accountability, and Donor Relations

As a programme funded by the African Development Bank (AfDB), NAGS-AP is subject to stringent audit, monitoring, and financial oversight.

 All financial disbursements, procuremen,  and payments are recorded, available for audit, and reported to AfDB.

Any allegations of misappropriation or forgery will be taken seriously. If there is credible evidence, NAGS-AP and the Federal Ministry of Agriculture & Food Security are ready to cooperate with any investigation.

4. On the Claims of Supplier Hardship

 NAIDA regrets any hardship experienced by members.

 The Association is aware that the NAGS-AP is working assiduously to expedite all delayed payments and to address bottlenecks.

 Theprogrammee has informed NAIDA about its  internal reconciliation and transparency efforts to ensure that payments are not delayed unduly

5. Correction of Misleading or False Statements

The article implies that all payments are stalled and that no payments have been made. This is factually inaccurate. Some payments have been made; others are in process.

The suggestion that senior officials have acted in bad faith or diverted funds without evidence is defamatory and misleading.

Assertions that the situation could “jeopardize the state of emergency declared in the agric sector” or that food prices will spiral are speculative and alarmist.

6. Commitment to Transparency and Way Forward

To ensure transparency, the Association is glad that the NAGS-AP has indicated its readiness to publish (or make available) a schedule of payments, names of suppliers who have been paid, and those pending, along with reasons for delays.

We invite Factsheet.ng and other media houses to engage with us directly, present evidence, and verify facts before making public allegations that damage reputations and sow distrust.

Conclusion

The claims in the aforementioned article are exaggerated, factually incomplete, and misleading. NAIDA remains committed to fulfilling its mandate to support smallholder farmers, ensuring timely delivery of inputs, remunerating suppliers, and operating within the rules of accountability and transparency. We urge the public and media to await verified facts, official reports, and audit findings rather than relying on uncorroborated claims.

Kabiru Umar Fara

President

16th September, 2025