Reps examine alleged diversion of N1.12tn Anchor Debtors Fund

The Home of Representatives Committee on Diet and Meals Safety, on Tuesday, started an investigation into the alleged diversion of ₦1.12 trillion meant for the execution of the Anchor Debtors Programme (ABP) by varied Ministries, Departments, and Businesses.

The panel can be scrutinising the operations of NIRSAL Microfinance Financial institution over its spending of ₦215 billion on agribusinesses, alongside the Bank of Industry, which disbursed ₦3 billion to 22,120 smallholder farmers underneath the agriculture worth chain financing initiative.

On the investigative listening to in Abuja, Chairman of the committee, Chike Okafor, expressed concern over the transparency of the disbursement course of. He said, “We’re probing how the Central Bank of Nigeria, by the Anchors Debtors Programme, disbursed about ₦1.12tn to 4.67 million farmers concerned in both maize, rice or wheat farming by 563 anchors.

“The CBN ought to observe that we’re conscious it has about 24 taking part monetary establishments by which it disbursed these humongous quantities. I’m additionally conscious that you just (CBN) have written to 24 of them however now we have proof of solely 9. Please, observe this.

“Secondly, we’re probing how NIRSAL disbursed ₦215bn up to now to facilitate agriculture and agribusinesses. Additionally, the Bank of Industry on the way it disbursed ₦3bn to 22,120 smallholder farmers by the agriculture worth chain financing programme.”

Okafor famous that the creation of the committee was a part of a legislative effort to collaborate with the chief and stakeholders to make sure Nigeria turns into a food-secure and nourished nation.

A consultant of NIRSAL Microfinance Financial institution, Charles Bassey, attributed the setbacks in mortgage repayments to widespread insecurity. He defined that whereas beneficiaries had been chosen primarily based on strict pointers, many confronted severe challenges.

“It was primarily based on these pointers that we disbursed these funds. A number of the challenges that they’ve written about embody insecurity challenges. A few them had pointed to the truth that after they’d invested the funds in agricultural enterprise, they weren’t ready to return to the farms due to the expertise of banditry and herdsmen.

“This delayed their seasonal interventions and harvest. Some additionally pointed to pure disasters reminiscent of flooding and drought which affected them. A couple of of them requested for restructuring of the mortgage facility to permit them time to repay accordingly,” Bassey mentioned.

In the meantime, Olushola Obikanye, Group Head, Agric Finance and Stable Minerals at Sterling Bank, advised the lawmakers that the financial institution had totally repaid its obligations underneath the scheme.

“The full fund repatriated to the CBN, which is the cumulative of the undisbursed funds that had been returned and the disbursed funds that had been returned. The full funds repatriated to the central financial institution stood at ₦113.49bn. This leaves Sterling Bank with an excellent of zero naira, zero kobo owing underneath this scheme,” he mentioned.