Nigerian farmers who benefitted from the Central Bank of Nigeria, CBN, Anchor Borrower scheme are still owing over N760 billion, according to the International Monetary Fund, IMF.
IMF disclosed this in its Selected Issue paper which was prepared by the Fund’s team in the the county after consultations with various federal government agencies in charge of the scheme.
Out of the over N1 trillion disbursed so far under the scheme, Bretton Wood, United State of America, USA based agency said beneficiaries had paid back a paltry N24 billion, representing 24 percent of the entire sum.
One of the reasons for default, IMF said is that the disbursement was not based on need, raising questions of fund diversion by some farmers who benefited from the credit scheme.
The scheme was initiatiated by the Godwin Emefiele-led CBN to significantly increase food production in the country, but the IMF said the aim has not been achieved.
The reportbsaid:: “The weak effect of agricultural credit on production growth could be associated with difficulties in targeting the correct recipients.”
“For the Anchor Borrowing Programme, repayment is also low at 24 per cent, especially since repayment can be made in kind, thereby limiting the tenor of the loans to one year.
“Part of the problem is that the incentive structure for repayment is weak, the recipient loans are not always well targeted and occasionally the funding is used for other purchases (e.g., new agricultural input trading companies to elicit trading rents).”
