Representatives start looking into N1.12 trillion in misappropriated agricultural funding.

The investigation into the purported diversion of N1.12 trillion intended for the implementation of the Anchors Borrowers Program by Ministries, Departments, and Agencies was initiated by the House of Representatives Committee on Nutrition and Food Security on Tuesday.

The panel is also looking into how the Bank of Industry disbursed N3 billion to 22,120 smallholder farmers through the agriculture value chain financing scheme, and how the NIRSAL Microfinance Bank spent N215 billion on agribusinesses.

Chike Okafor, the committee’s chairman, voiced his concerns during the investigative hearing in Abuja that they only had evidence from nine of the 24 financial institutions that participated in the ABP’s funding distribution.

He said, “We are probing how the Central Bank of Nigeria, through the Anchors Borrowers Programme, disbursed about N1.12 trillion to 4.67 million farmers involved in maize, rice, or wheat farming through 563 anchors.

We are investigating how NIRSAL has disbursed N215 billion to date to support agriculture and agribusinesses, as well as how the Bank of Industry has disbursed N3 billion to 22,120 smallholder farmers through the agriculture value chain financing program. One of the main oversight mandates of the Committee on Nutrition and Food Security is to ensure proper implementation of intervention programs by relevant MDAs and government agencies related to food security and nutrition. The CBN should take note of the fact that we are aware that it has approximately 24 participating financial institutions through which it has disbursed these enormous amounts. I am also aware that you (CBN) have written to all 24.

“We are involved in the investigations and monitoring of resource allocation, advancement of new laws, and strengthening of existing ones, among others, on matters related to nutrition and food security.

“These are comprehensively contained in the committee’s jurisdiction as captured in the standing orders of the House.

“Please note that nutrition and food security are twin issues that cannot be separated and have been on the front burner of the Renewed Hope Agenda of the present administration.”

He added, “The creation of the Committee on Nutrition and Food Security is a legislative response to join forces with the executive arm of government and other stakeholders to tackle these issues and make Nigeria a food-secured and nourished nation.”

A representative of NIRSAL Microfinance Bank, Charles Bassey, identified insecurity as a major challenge to the successful implementation of the bank’s loan scheme.

He said in trying to determine who qualified to benefit from the intervention, they paid close attention to laid-down guidelines.

“We distributed these funds in accordance with their standards. Among the difficulties mentioned was insecurity. A few recipients mentioned that they were unable to return to their fields due to attacks by herders and banditry after using the monies for agricultural ventures.

Their harvest and seasonal interventions were postponed as a result. Others mentioned how they were impacted by natural calamities like drought and flooding. According to Bassey, some even requested that the loan arrangement be restructured to give them more time to make their repayments.

Olushola Obikanye, Group Head, Agric Finance and Solid Minerals, Sterling Bank, stated that the bank is not indebted because it has sent N113.49 billion to the CBN.The sum of all undisbursed monies returned and disbursed funds returned to the CBN, or the total amount of funds repatriated, was N113.49 billion. As a result, Sterling Bank has zero naira and zero kobo left over under this plan, Obikanye stated.