CBN affirms loan repayments under ABP stand at 52.39 percent

*The Central Bank of Nigeria says its Anchor Borrowers’ Programme has contributed significantly to the increased national output of focal commodities, with maize and rice peaking at 12.2 and 9.0 million metric tonnes in 2021 and 2022, while supporting the Federal Government’s drive for food security and economic growth

Gbenga Kayode | ConsumerConnect

The Central Bank of Nigeria (CBN) has said it remains committed to the Bank’s developmental mandate of stimulating access to finance for the real sector of the country’s economy.

ConsumerConnect reports the CBN disclosed the total repayments under the Anchor Borrowers’ Programme (ABP) of the Bank stood at N0.503 trillion, representing 52.39 percent, as of the end of February 2023.

Dr. Abdulmumin Isa, Acting Director of Corporate Communications Department at CBN, noted this development at the weekend in Abuja, FCT, while interacting with reporters on the performance of the ABP.

Dr. Abdulmumin Isa, Acting Director of Corporate Communications at CBN

He said that the balance of N0.119 trillion was not due for repayment.

The Acting Director, Corporate Communications also revealed the CBN had released the sum of N1.079 trillion, as of February 28 this year, of which N0.960 trillion was due for repayment.

Support for smallholder farmers

Dr. Isa stated the Bank’s ABP had supported about 4.57 million Smallholder Farmers (SHFs) at end-February, 2023, who cultivated over 6.02 million hectares of 21 commodities across the West African country.

Isa further listed the commodities as rice, wheat, cowpea, millet, maize, cotton, fish, soya bean, poultry, cassava, groundnut, ginger, sorghum, oil palm, cocoa, sesame, tomato, castor seed, yellow pepper, onions, and cattle/dairy.

Boost to national output of focal commodities

Citing statistics from the Food and Agriculture Organisation (FOA), the CBN Acting Director as well noted that the ABP had contributed significantly to the increased national output of focal commodities, with maize and rice peaking at 12.2 and 9.0 million metric tonnes in 2021 and 2022, respectively.

He said the programme had also helped to improve the national average yield per hectare of these commodities, with productivity per hectare almost doubling within the eight years of the Programme’s implementation.

Repayments under the ABP, Isa also stated, are made through cash or produce by the beneficiaries.

The Acting Spokesperson of CBN stressed that the outstanding due balance on loans was still under moratorium due to the COVID-19 forbearance granted to beneficiaries of the Bank’s interventions in March 2020 and extended to February 28, 2022.

He explained that “it is pertinent to note that the tenor of loans under the ABP is based on the commodity gestation period.

“For instance, loans granted to farmers cultivating some perennial crops could have up to seven-year tenor.”

The Bank’s interventions, with the core objective of catalysing the economy’s productive base, have continued to support investments in capital assets in sectors with high-growth and employment-elastic potential, stated he.

The Acting Director of Corporate Communications said: “The Central Bank of Nigeria remains committed to its developmental mandate of stimulating access to finance for the real sector, particularly agriculture, as it continues to support the Federal Government’s drive for food security and economic growth.

“Accordingly, the Central Bank of Nigeria continues to welcome applications from eligible Nigerian farmers and firms under the Anchor Borrowers’ Programme.”

Kindly Share This Story