Anchor Borrowers’ Programme: FG Intensifies Efforts to Recover Outstanding Agricultural Loans

In a bid to recover outstanding loans amounting to N450.9 billion issued to farmers through the Central Bank of Nigeria (CBN) Anchor Borrowers’ Programme (ABP), the NIRSAL Microfinance Bank (NIRSAL-MFB) has joined forces with the Nigerian Financial Intelligence Unit (NFIU).

A source within NIRSAL-MFB revealed that the collaboration aims to ensure the repayment of all remaining debts by defaulting beneficiaries. Out of the N1.12 trillion disbursed to 563 anchors, approximately N670.4 billion has been repaid, leaving a significant balance still outstanding.

The NFIU is providing crucial intelligence to NIRSAL-MFB to aid in the recovery process. The collaboration represents a more aggressive stance by the government in recouping these funds, as stated by the NIRSAL-MFB source: “We are determined to recover the N450 billion balance from beneficiaries reluctant to pay back. This shows that the government is committed to recouping these funds.”

The implementation of Global Standing Instructions (GSI) has prompted many beneficiaries to initiate repayments out of fear of repercussions. The GSI, a last-resort measure employed by banks to recover outstanding debts, allows creditors to debit the accounts of debtors in any financial institution where they hold funds. This ensures that even Nigerians residing outside the country cannot evade repayment obligations.

Acknowledging that some borrowers face challenges in repayment, the official highlighted the introduction of a “self-loan liquidation app” by the bank, enabling borrowers to settle their loans online.

The ABP, initiated in November 2015, aimed to foster economic linkages between Small Holder Farmers (SHF) and Anchors. Over its tenure, the programme benefited approximately 4.67 million farmers engaged in maize, rice, or wheat farming.

Notable beneficiaries of the programme include the Rice Farmers Association of Nigeria (RIFAN), AFEX Commodities, and THRIVE Agric, who received substantial funds to support farming initiatives. However, as of yesterday, it remains unclear whether these beneficiaries have completed their loan payments.