Banks, Farmers Jittery Over Probe of N1.12trn Anchor Borrowers Scheme
Tension is mounting across Nigeria’s agricultural sector as both banks and farmers express growing unease over the ongoing probe into the controversial N1.12 trillion Anchor Borrowers Programme (ABP).
Launched by the Central Bank of Nigeria (CBN) to support smallholder farmers and boost local food production, the Anchor Borrowers scheme was hailed as a major intervention to reduce dependency on food imports. However, recent revelations about mismanagement, repayment defaults, and lack of transparency have triggered a full-scale investigation.
Financial institutions that served as intermediaries in disbursing funds are reportedly under scrutiny, with regulatory bodies demanding a clear breakdown of loans, beneficiaries, and recovery efforts. Many commercial banks are now concerned about their exposure and potential reputational damage, especially as auditors comb through years of records.
Meanwhile, thousands of farmers who benefitted from the scheme are also feeling the pressure. With rising fears of loan recalls, asset seizures, and legal consequences, several smallholder farmers have called for a fair and structured approach to the probe, citing harsh weather conditions, insecurity, and inflation as reasons for their inability to repay.
Analysts warn that the investigation, while necessary, could disrupt confidence in future agricultural credit schemes if not handled transparently and fairly. The fate of the Anchor Borrowers Programme now hangs in the balance, as stakeholders await the outcome of what could be one of the most far-reaching probes into Nigeria’s agricultural financing history.
