CBN Recoups N503bn of N1.079trn Loans to Smallholder Farmers

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has disclosed that as of February 28, 2023, it had disbursed a total of N1.079 trillion as loans to about 4.57 million smallholder farmers under its Anchor Borrowers’ Programme (ABP) but has recouped N503 billion.

The Acting Director of the Corporate Communications Department at the CBN, Mr AbdulMumin Isa, in a chat with newsmen in Abuja, disclosed that the bank was committed to its developmental mandate of stimulating access to finance for the real sector.

He explained that the repayments under the ABP were made through cash or produce by the beneficiaries, noting that the outstanding due balance on loans was still under moratorium due to the COVID-19 forbearance granted to beneficiaries of the bank’s interventions in March 2020 and extended to February 28, 2022.

The CBN spokesman said the scheme had contributed significantly to the increased national output of focal commodities, with maize and rice peaking at 12.2 and 9.0 million metric tonnes in 2021 and 2022, respectively.

According to him, the programme has also helped to improve the national average yield per hectare of these commodities, with productivity per hectare almost doubling within the eight years of the programme’s implementation.

Mr Isa stated that the beneficiaries cultivated over 6.02 million hectares of 21 commodities across the country, listing the commodities as rice, wheat, cowpea, millet, maize, cotton, fish, soya bean, poultry, cassava, groundnut, ginger, sorghum, oil palm, cocoa, sesame, tomato, castor seed, yellow pepper, onions, and cattle/dairy.

“It is pertinent to note that the tenor of loans under the ABP is based on the commodity gestation period. For instance, loans granted to farmers cultivating some perennial crops could have up to seven-year tenor,” he explained.

“The Central Bank of Nigeria remains committed to its developmental mandate of stimulating access to finance for the real sector, particularly agriculture, as it continues to support the Federal Government’s drive for food security and economic growth.

“Accordingly, the Central Bank of Nigeria continues to welcome applications from eligible Nigerian farmers and firms under the Anchor Borrowers’ Programme,” he added.