FAAC
The Federation Allocation Accounts Committee (FAAC) has deducted N622.75 million over 15 months to repay loans disbursed to farmers under the Anchor Borrowers Programme, Dandali reports.
The Anchor Borrowers Programme, initiated by the Central Bank of Nigeria (CBN) in November 2015, aimed to create economic links between Small Holder Farmers and large-scale agricultural buyers, known as Anchors.
A revenue disbursement report from the Federal Account Allocation Committee revealed that from May 2023 to July 2024, the government deducted N45.52 million monthly, totalling N622.75 million over 15 months. However, this repayment is minimal compared to the outstanding N450.90 billion owed to the CBN as of March 2024.
The deduction, labelled “CBN Anchor Borrowers,” appeared in the nation’s gross revenue reports each month but did not specify which state or association was affected by the deduction.
The CBN has since discontinued the Anchor Borrowers Programme and is actively working to recover the funds. Recovering the loans from beneficiaries has been challenging, leading the bank to adopt additional measures. President Bola Tinubu has reportedly instructed security agencies to assist the CBN in recovering the funds owed under the programme.
Additionally, the CBN has suspended new loan applications under its intervention programs. CBN Governor Yemi Cardoso pointed out that some of the institution’s previous failures were linked to “quasi-fiscal activities” in its development finance initiatives.
In April, a CBN official confirmed that efforts to recover the disbursed loans were ongoing. “There is a committee dedicated to the Anchor Borrowers Programme recovery, and it is working within the laid-down procedures between the banks and the CBN to reclaim the funds,” the official said.
Overall, about 4.67 million farmers, primarily engaged in maize, rice, and wheat farming, benefitted from the programme. A CBN document indicated that top beneficiaries included Kebbi State, the Rice Farmers Association of Nigeria, the Cotton Producers and Merchants Association of Nigeria, the Maize Growers and Processors Association of Nigeria, and Afex Commodities, among others.
Meanwhile, the government has made statutory deductions totalling N1.014 trillion between January and July, an increase of 13.42% (N120.12 billion) from N894.77 billion during the same period in 2023. This increase is primarily attributed to foreign debt servicing payments on behalf of state governments and other statutory deductions, which have limited the funds available for essential services and development projects.
