5 Things To Know About CBN's Anchor Borrowers Programme
Buhari’s government is paying a lot of attention to the Agric sector.
This has seen massive investments made to boost food production while relevant authorities continue to make policies to drive further investments.
On Wednesday, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending announced that it is deploying an innovative nation-wide field structure to support 225,000 farmers under the Central Bank of Nigeria’s Anchor Borrowers Programme.
The CBN’s Anchor Borrowers’ Programme has seen over 44-billion-naira investment that empowered over 200,000 farmers across 29 states over the past two years.
Perhaps, you are farmer or planning to invest in the agric sector and do not know about the Anchor Borrowers’ Programme, here are 5 quick facts you need to know.
1. The Anchor Borrowers’ Programme, ABP was launched by President Muhammadu Buhari on November 17, 2015 and is intended to create a linkage between anchor companies involved in the process of selecting key agricultural commodities and small holder farmers.
2. The focus of ABP is to provide seed to farmers and cash to grow the crops. This will help to boost production of the select commodities and make sure there is constant supply of the commodities to the agro processors.
3. If you are farmer benefitting from APB, your produce at harvest is supplied to the Agro-processor (Anchor) who pays the cash equivalent to your bank account.
4. The programme targets farmers who produce cereals (Rice, Maize, wheat etc.); Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.); Tree crops (Oil palm, Cocoa, Rubber etc.); Legumes (Soybean, Sesame seed, Cowpea etc.); Livestock (Fish, Poultry, Ruminants etc.). Others include: Cotton, Sugarcane, Tomato, etc.
5. The fund given to the farmers are by no means free money. The participating banks, which work with the CBN lend to Anchors at 9% per annum for onward disbursement to the farmers. The loan is repaid by the farmers after the crops have been harvested with the harvested crops which must cover the loan principal and interest.
The programme has worked wonders especially in rice and maize production. Now, you know how Nigeria started a journey towards rice sufficiency.
In fact, your affordable Lake Rice is a product of this scheme.
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