CBN releases revised guidelines on Anchor Borrowers’ Programme

CBN Headquarters Abuja FILE PHOTO

The Central Bank of Nigeria (CBN) over the weekend released revised guidelines on one of its major intervention schemes, the Anchor Borrowers’ Programme.

According to the apex bank, ‘‘The revised guidelines address current realities and developments in the Anchor Borrowers’ Programme, aimed at promoting best practice in the implementation of the programme.”

The CBN stated that, “The guidelines recognise the distinctiveness of smallholder farmers, the ABP transactions dynamics and the Project Management Team (PMT) in the implementation process.”

It also adopts measures to ensure the protection of smallholder farmers. ‘‘It defines eligibility criteria and responsibilities of relevant stakeholders under the programme such as the loan limit, interest rate, tenor, agricultural commodities eligible for financing under the programme. It outlines the implementation windows and operating models under each window type.

“This document is therefore aimed at improving the programme’s implementation process and enhancing stakeholders’ participation for the realisation of the ABP’s objective,” it said.

Meanwhile, the CBN recorded a shortfall of N378.5 billion in loan repayment by beneficiaries under the Anchor Borrower’s programme in six years, data obtained from the apex bank have shown.

Between November 2015, when the ABP scheme was introduced and November 2020, the CBN executed a total of 2.3 million projects under the programme and also disbursed N497.2 billion to farmers.

However, data obtained from the CBN’s fourth quarter 2020 economic report showed that only N118.7 billion had been repaid by the beneficiaries within the review period.