CBN loans to farmers hit N1tn amid rising default rate 

The total amount disbursed under the Anchor Borrowers Programme of the CBN rose to N1.01tn as of the end of April 2022. 

Figures obtained from the CBN’s reports from members of its Monetary Policy Committee said, “Between January and February 2022, the bank disbursed N29.67bn under the Anchor Borrowers’ Programme for the procurement of inputs and cultivation of maize, rice, and wheat, three crops that hitherto were significant concerns of FX demand.

“These disbursements bring the total under the programme to over 4.52 million smallholder farmers, cultivating 21 commodities across the country, comes to a total of N975.61bn.”

In its latest MPC report on the Anchor Borrowers Programme, the CBN said, “Between April and May 2022, the Bank released the sum of N57.91bn under the Anchor Borrowers’ Programme to 185,972 new projects for the cultivation of rice, wheat, and maize, bringing the cumulative disbursement under the programme to N1.01tn, disbursed to over 4.2 million smallholder farmers cultivating 21 commodities across the country.”

The Development Finance Department of the CBN said in its revised Anchor Borrowers’ Programme Guidelines for September 2021 that insurance cover should be provided under the scheme.

The guidelines said the underwriters should “provide insurance cover for the projects; ensure timely processing and settlement of claims; provide technical assistance to farmers on insurance policies; and monitor projects for early warning signals or red flags.”

The guidelines further said that they should “render periodic report on farm conditions; serve as member of the project management team; and carry out any other responsibilities as may be prescribed by the CBN from time to time.”

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