President Tinubu Orders Security Agencies to Recover N577 Billion Defaulted Anchor Borrowers’ Loans by Sept 18

In a bid to salvage the faltering Anchor Borrowers’ Loan Scheme initiated by the Central Bank of Nigeria (CBN), President Bola Tinubu has taken decisive action by instructing security agencies to recover a staggering N577 billion owed by beneficiaries. The move aims to free up government funds and revitalize the agricultural sector, which is crucial for Nigeria’s food security.

Saturday Vanguard’s investigation reveals that out of the N1.1 trillion disbursed to beneficiaries under the Anchor Borrowers’ Scheme, only slightly over N546 billion has been repaid, leaving a significant balance unaccounted for. This outstanding sum includes funds owed by commercial and microfinance banks, state governments, farmers’ associations, individuals, and corporate entities.

The Presidency is deeply concerned that this withheld amount could hinder the program’s goals, preventing other farmers from accessing essential loans for increased food production. President Tinubu, having been briefed extensively on the situation, is dismayed by the situation and is determined to recover the outstanding funds promptly.

According to reliable sources, President Tinubu has summoned top security agencies in the country to take all necessary measures to retrieve the government’s money from the defaulters by or before September 18, 2023. This effort aims to channel these funds to genuine farmers in need of financial support for agricultural production.

At a meeting held in the Presidential Villa in Abuja, the President expressed his frustration upon learning that one of the CBN’s subsidiaries was among the defaulting banks, withholding crucial funds meant to benefit farmers and ensure food security.

During the meeting, it was revealed that a subsidiary of the CBN and a commercial bank had illicitly diverted N255 million, which was intended to be distributed as loans to farmers and other deserving recipients.

Furthermore, some beneficiaries have refused to repay their loans on schedule, citing inadequate returns on their investments as a reason for the delay. This disregard for the loan repayment terms has exacerbated the situation.

An anonymous top security official disclosed that many bank directors and managers have been interrogated regarding their involvement in this loan scandal. Several of them have admitted to their roles in securing the loans and acknowledged the breaches in repayment agreements.

The official stated, “We have written to all the defaulters, and many bank officials have confessed their role in the loan scandal. They are willing to take necessary steps to repay the loans.”

Efforts are underway to ensure that the outstanding funds are recovered by the September 18 deadline, with some banks already committed to returning the outstanding amounts.

The Anchor Borrowers’ Programme, which aimed to bolster agricultural production, involved various farmers’ groups, including the Maize Farmers’ Association, Soya Beans, and Cotton Farmers’ Association. However, data indicates that repayment has been inconsistent, with some groups returning only a fraction of the funds they received.

While there has been reluctance from spokesmen for the security agencies to comment on the presidential order, the spokesperson for the Department of State Services (DSS), Dr. Peter Afunanya, highlighted that such presidential directives are not uncommon when it comes to national security matters.