The House of Representatives is set to probe the non-recovery of over N81.502 billion disbursed as part of the Anchor Borrower Programme launched by the Federal government in November 2015.

The motion on the need for the House to investigate the usage of funds disbursed by the Bank of Agriculture to Anchor companies under the Anchor Borrowers Programme was sponsored by Rep Serguis Ose Ogun.

Ogun noted that in line with its mandate, the Central Bank of Nigeria (CBN) established the Anchor Borrowers’ Programme (ABP) with the intention of creating a linkage between anchor companies involved in processing and the Small Holder Farmers (SHFs) of key agricultural commodities.

According to him, the thrust of the Anchor Borrower Programme was to provide loans to small holder farmers to boost local production of key agricultural commodities like cereals (rice, maize, wheat etc.) cotton, roots and tubers (cassava, potatoes, yam, ginger etc.), tree crops (oil palm, cocoa, rubber etc.), legumes (soybean, sesame seed; cowpea etc.), tomato and livestock (fish, poultry, ruminants etc.) and also aimed at stabilizing input supply to agro processors while addressing the country’s negative balance of payment on food.

The lawmaker informed the House that out of the N104,226,956,985.10 provided by the CBN for the Scheme, a total of N86,634,165,880.59 was disbursed to the Anchor companies (who will serve as processors) with the sum of N81, 502,322,030.31 yet to be recovered from the defaulting Anchor companies.

He said that with the non-recovery of the outstanding N81, 502,822,030.31, other potential small holder farmers who would have been beneficiaries of the Scheme are being denied of this opportunity.

He further said that the non-recovery of the said balance of the loan from the Anchor companies is negatively affecting the overall objective of the Anchor Borrowers Programme as it is a revolving Fund.