CBN Partners RIFAN To Recover N463bn Anchor Borrowers Programme Unpaid Loan

 

CENTRAL Bank of Nigeria (CBN) has partnered with Rice Farmers Association of Nigeria (RIFAN), to forcefully recover N463bn Anchor Borrowers Programme (ABP) unpaid loan from beneficiaries of the scheme.

 

In a bid to reduce food importation and address the negative trade balance in the country, the federal government launched the Anchor Borrowers Programme in 2015 to boost agricultural yields.

 

The guidelines for the programme stipulate that upon harvest, benefiting farmers are to repay their loans with produce (which must cover the loan principal and interest) to an anchor, who in turn pays the cash equivalent to the farmer’s account.

 

However, CBN’s latest record showed that farmers owed N463 billion as of March.

 

Confirming the partnership, Head of CBN’s Development and Finance Unit in Gombe, said the apex bank would collaborate with RIFAN to recover the loans in the state.

 

He said: “Although the CBN’s schemes also helped with the crash of the price of rice and created jobs as well as boosted Nigeria’s local capacity to meet demand, it is important farmers continue to pay their loans, so as to encourage the government to accommodate more farmers in the programme in 2022.

 

“The Anchor Borrowers’ Programme has made a lot of positive impact on our economy, output and even the national food security system has improved however the loan default could deprive many other farmers.”