Refund CBN Anchor Borrowers’ Loan, WFAN Warns Farmers.

The Wheat Farmers Association of Nigeria (WFAN), Bauchi State Branch, has warned the 2021/2022 dry season farmers to pay back the loan they took from the Federal Government.

The loan was obtained under the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ Programme.

Recall that in January 2022, the CBN, in collaboration with WFAN provided materials to thousands of wheat farmers. These materials where seeds, fertiliser, herbicide’s and water pumps.

The Chairman of the Association Mohammed Adamu, said the government has supported farmers to enhance the production of agriculture products in a large scale

Adamu lamented that despite, the efforts of the government to support the farmers, some of them have refused to pay up the loans which they collected after harvest and further warn on the pending consequences of such actions.

Adamu said “I appeal to wheat farmers in Bauchi, especially those who are yet to repay the loan, to hasten repayment, as preparations for the next cropping season have reached an advanced stage.”

The chairman warned that any farmer who defaults would bear the consequences, which include legal action.

The Anchor Borrowers’ Programme, was launched by President Muhammadu Buhari on November 17, 2015 and is intended to create a linkage between anchor companies involved in the process of selecting key agricultural commodities and small holder farmers.

The focus of ABP is to provide seed to farmers and cash to grow the crops. This will help to boost production of the select commodities and make sure there is constant supply of the commodities to the agro processors.

The programme targets farmers who produce cereals (Rice, Maize, wheat etc.); Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.); Tree crops (Oil palm, Cocoa, Rubber etc.); Legumes (Soybean, Sesame seed, Cowpea etc.); Livestock (Fish, Poultry, Ruminants etc.).

Others include: Cotton, Sugarcane, Tomato. The fund given to the farmers are loans. The participating banks, which work with the CBN lend to Anchors at nine per cent per annum for onward disbursement to the farmers.

The loan is repaid by the farmers after the crops have been harvested with the harvested crops which must cover the loan principal and interest.

Over N1trn has been disbursed to farmers under the Anchor Borrowers Programme.

Between April and May this year, the CBN released the sum of N57.91bn under the programme to 185,972 new projects for the cultivation of rice, wheat, and maize.

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