CBN Struggles to Recover N629 Billion Anchor Borrowers’ Loans, Audit Reveals
Nigeria’s Auditor General has raised serious concerns over the management of the Central Bank of Nigeria’s (CBN) flagship Anchor Borrowers’ Programme (ABP), revealing that N629.04 billion in loans remain unrecovered. The findings, drawn from the apex bank’s 2022 financial statements and recently submitted to the National Assembly, highlight ongoing questions about transparency, internal controls, and the programme’s overall impact on the nation’s agricultural sector.
Launched in 2015, the ABP was intended to support smallholder farmers by linking them with processing companies—referred to as “anchors”—to boost the production of key commodities and create new employment opportunities. At its peak, the initiative had reportedly benefited at least 4.8 million Nigerians, with the government providing farm inputs and cash for labor to help stabilize food production and address Nigeria’s negative food balance of payments.
However, the audit report uncovered glaring discrepancies in loan management and programme implementation. While outstanding loans fell from N949.18 billion in 2021 to N629.04 billion in 2022, auditors criticized the CBN for failing to provide adequate disclosures on beneficiaries, repayments, or the programme’s overall impact. The report warned that such gaps, coupled with weak internal controls, could threaten the country’s food security and lead to potential diversion of public funds.
The CBN defended its performance, stating that many loans were restructured due to natural disasters and COVID-19 disruptions. In 2020 and 2023, the bank extended repayment periods and converted some loans into zero-coupon debentures to provide farmers with more time and flexibility. Despite these measures, auditors deemed the CBN’s response insufficient, insisting that corrective actions must be fully implemented to validate the programme’s integrity.
The audit recommended that the National Assembly’s Public Accounts Committees compel the CBN Governor to account for the N629 billion outstanding, recover the full amount, and remit it to the federal treasury. Officials failing to comply could face sanctions under Nigeria’s Financial Regulations (2009), highlighting the urgency of addressing long-standing accountability and transparency issues in one of the country’s most prominent agricultural support programmes.
source: premiumtimes