Monday , September 26 2022
CBN Addresses Concern on Farmers' Non-Repayment of Loans

CBN Addresses Concern on Farmers’ Non-Repayment of Loans

The Central Bank of Nigeria (CBN) has appealed to farmers who defaulted on repayment of loans obtained under the Anchor Borrowers’ Programme (ABP) to pay back.

The CBN Development Finance Officer, Sadeeq Ajayi made the appeal in Ibadan at the Agribusiness Innovation Clinic titled “Fostering Innovation and Collaboration Across the Agricultural Value Chain” which was organised by the Global Alliance for Improved Nutrition (GAIN).

Click To Read: Anchor Borrowers’ Programme: CBN Disburses N948 Billion To Smallholder Farmers

Ajayi in his addressed explained that majority of farmers in Oyo State, who benefited from the scheme, have not repaid their loans which is expected to boost local production.

In 2015, CBN kicked off the Anchor Borrowers’ Programme (ABP) to help farmers access finance easily in a bid to boost local production but the inability to recover the loans from the defaulting farmers said it is a threat to the scheme.

Click To Read: CBN Slashes Interest on Intervention Loans to 5 Per Cent

Ajayi added that that it has prevented other farmers from accessing the facility. His words: “While the Anchor Borrowers’ Programme has recorded some level of success, the failure of farmers to repay the loans

“Many of the farmers refused to pay back their loans due to misconception that since CBN is the lender, the loan is a ‘national cake’ and they do not have to pay back what they consider theirs as citizens.

 

 

 

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