ABUJA, Nigeria (VOICE OF NAIJA)-The House of Representatives Committee on Nutrition and Food Security has launched an investigation into the alleged diversion of N1.12 trillion allocated for the Anchor Borrowers Programme (ABP) by various Ministries, Departments, and Agencies (MDAs).
The committee is also scrutinising the operations of NIRSAL Microfinance Bank over its disbursement of N215 billion for agribusinesses, and the Bank of Industry concerning the release of N3 billion to 22,120 smallholder farmers under the agriculture value chain financing programme.
During the investigative hearing held Tuesday in Abuja, Committee Chairman, Chike Okafor, voiced concerns over a lack of transparency among participating financial institutions involved in the ABP disbursement.
“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,” Okafor said.
He pointed out that while the Central Bank of Nigeria reportedly engaged 24 participating financial institutions in the programme, evidence of compliance had only been received from nine.
“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.”
Okafor reaffirmed the committee’s oversight responsibility in ensuring that government intervention efforts in food security and nutrition are properly implemented.
READ ALSO: Reps To Probe CBN Retrenchment, N50bn Payoff Allocation
“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.”
He further explained that the establishment of the committee was a legislative effort to complement executive actions toward achieving national food security.
“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.”
Appearing before the panel, a representative of NIRSAL Microfinance Bank, Charles Bassey highlighted security concerns as a key challenge affecting the bank’s loan scheme implementation.
“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 stated.
Meanwhile, Group Head, Agric Finance and Solid Minerals at Sterling Bank, Olushola Obikanye, disclosed that the bank has fully repaid its obligations under the scheme.
“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,” he said.