dark

CBN to clampdown on ABP loan defaulting farmers

Women farmers

The Central Bank of Nigeria (CBN) has appealed to farmers who defaulted in paying back the loans obtained under the Anchor Borrowers’ Programme (ABP) to pay back.

Representative of the CBN Development Finance Office, Sadeeq Ajayi, made the appeal on Wednesday in Ibadan, Oyo State, at the Agribusiness Innovation Clinic.

The News Agency of Nigeria (NAN) reports that the clinic, themed: “Fostering Innovation and Collaboration Across the Agricultural Value Chain,” was organised by the Global Alliance for Improved Nutrition (GAIN).

ABP is an agricultural loan scheme launched in 2015 by the Federal Government, through CBN, to provide loans (in kind and cash) to small holder farmers to boost agricultural production, create jobs, reduce food import bill toward conservation of foreign reserves.

Ajayi said the majority of farmers in Oyo State, who benefited from the scheme have not repaid their loans, noting that the inability of the CBN to recover these loans is threatening the scheme, and has prevented other farmers from accessing the facility.

“While the Anchor Borrowers’ Programme has recorded some level of success, the failure of farmers to repay the loans has, however, been a major setback.

“Many of the farmers refused to pay back their loans due to the misconception that since CBN is the lender, the loan is a ‘national cake’, and they do not have to pay back what they consider theirs as citizens.

“This attitude has made it difficult for other farmers, who also want to access the loan, to benefit from the scheme,” he said.

Many of the farmers refused to pay back their loans due to the misconception that since CBN is the lender, the loan is a ‘national cake’, and they do not have to pay back what they consider theirs as citizens.

Ajayi said that stakeholders, including the traditional rulers, should appeal to the defaulting farmers to promptly repay the loans for the sake of others.

“Of course, we are engaging various stakeholders and we expect the narrative to change very soon so that more people can have access to the fund,” he said.

In his keynote address, the Oyo State Commissioner for Trade, Industry, Investment and Cooperatives, Olasukanmi Olaleye, lauded the initiative of GAIN to tackle malnutrition in Nigeria.

Olaleye, represented by a Deputy Director in the Ministry, Mukaila Oladipo, described food fortification as one of the safest, most effective and affordable ways of addressing the micronutrient gaps in the country.

Also, a Senior Project Manager, GAIN Nigeria, Godwin Ehiabhi, said improved access to safe and nutritious food would reduce the country’s high rate of malnutrition. (NAN)

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

MoMo PSB Limited formally commences operations

Next Post

Popoola canvasses increased investment in SDGs

Related Posts
Total
0
Share