September 08, (THEWILL) – Indications have emerged that the Central Bank of Nigeria (CBN) has begun moves against beneficiaries of its Anchor Borrowers Programme (ABP) who have defaulted in their loan repayments.
This development follows the action by NIRSAL Microfinance Bank Limited (NMFB) which has published the names of some of the borrowers with the largest Non-Performing Loans (NPL).
The NMFB, in a demand notice issued in Abuja, indicated that it had reached out to the beneficiaries who it said had remained adamant in the call for the repayment of their overdue loans.
It said, “Following the Central Bank of Nigeria’s (CBN) directive to NIRSAL Microfinance Bank Limited (NMFB), to recover all non-performing intervention loans granted by NMFB under the Anchor Borrowers’ Programme (an intervention Scheme of the CBN), notice is hereby given to the under-listed customers, to offset their indebtedness to NMFB under the said intervention scheme of the CBN.
“Earlier Demand Notices have been issued by NMFB to the last known addresses of the aforesaid customers, hence, this Public Notice serves as the final demand notice.”
A report in November 2021 revealed that farmers who subscribed to the CBN’s Anchor Borrowers’ Programme owed the apex bank N463bn as of the end of March 2021, data from the CBN Economic Report for April 2021 showed.
The ABP was launched on November 17, 2015, by the President, Major General Muhammadu Buhari (retd.), to reverse the country’s negative balance of payments, especially in the area of food.
Beneficiaries of the programme include farmers cultivating cereals (rice, maize, wheat, etc.), cotton, roots and tubers, sugarcane, tree crops, legumes, tomato and livestock.
Loans are disbursed to the beneficiaries through deposit money banks, development finance institutions and microfinance banks, which the programme recognises as participating financial institutions.
The CBN report revealed that from the inception of the ABP in November 2015 to March 31 this year, the sum of N615.4bn had been disbursed to 3.04 million farmers
In the NMFB’s recent list of debtors published in Abuja were SADOLEN Interworld Ltd promoted by Saidu Audu Adaji and Nura Musa Hassa with N2. 050 billion loan amount; Gum Arabic Farms and Commodities Ltd promoted by Yusuf Ibrahim Babangida, N1.220 billion; Prime Synergy Global Solutions Ltd promoted by Mercy Ikeji and Jennifer Nyesom-Effiong, N1. 451billion.
Others are ASUJ Food Production and Processing promoted by Abubakar Umaru Jibrilla, N581.416 million; Souvenir Seeds Nigeria Ltd promoted by Roseline Omokora and Con Investment Ltd promoted by Lady Josephine Waze.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
