House of Representatives Committee on Nutrition and Food Security has launched an investigation into the expenditure of N1.12 trillion under the Anchor Borrowers Programme (ABP).
The committee is also examining the disbursement of N215 billion by NIRSAL Microfinance Bank for agribusiness projects, as well as N3 billion distributed by the Bank of Industry to 22,120 smallholder farmers through the Agricultural Value Chain Financing initiative.
The chairman of the committee, Hon. ChikeOkafor, raised concerns during a hearing on the alleged mismanagement of agricultural and food security funds by federal departments, agencies, and programmes.
Okafor stated that while 24 participating financial institutions (PFIs) were involved in disbursing ABP funds, the committee had only found evidence relating to nine of them.
He emphasised that a central role of the committee was to monitor how intervention programmes tied to food security and nutrition were implemented by relevant government ministries, departments, and agencies.
He stated, “We are scrutinising how the Central Bank of Nigeria (CBN) disbursed approximately N1.12 trillion through the ABP to 4.67 million farmers cultivating maize, rice, or wheat, working through 563 anchor firms.”
Okafor pointed out CBN had engaged 24 PFIs to manage the disbursement of the funds, yet only documentation from nine institutions was available.
He said some PFIs had made attempts to engage the committee.
He added, “The second issue under investigation is how NIRSAL allocated over N215 billion for agricultural and agribusiness purposes. Additionally, we are reviewing the Bank of Industry’s distribution of N3 billion to over 22,000 smallholder farmers under the agricultural value chain scheme.”
Reiterating the committee’s oversight duties, Okafor said their responsibilities included ensuring effective execution of intervention programmes by relevant government entities, scrutinising fund allocation, crafting new legislation, and enhancing existing laws on nutrition and food security.
He said those responsibilities were fully described in the committee’s mandate as outlined in the House’s rules.
Okafor also emphasised that nutrition and food security were inseparable and remained top priorities in the current administration’s Renewed Hope agenda.
He further explained that the committee’s formation reflected a legislative commitment to work alongside the executive and other stakeholders in ensuring a well-nourished and food-secure Nigeria.
During the hearing, Charles Bassey, representing NIRSAL Microfinance Bank, cited security challenges as a major obstacle to the proper execution of their loan scheme.
Bassey explained that in identifying eligible beneficiaries, the bank strictly followed established guidelines.
He stated, “However, issues such as insecurity, specifically, attacks by bandits and herders, prevented many farmers from returning to their fields after investing the funds, delaying harvests and seasonal agricultural activities.”
Bassey added that some farmers were also affected by environmental factors, like flooding and drought. As a result, a few requested that their loans be restructured to allow more time for repayment.
Group Head of Agric Finance and Solid Minerals at Sterling Bank, OlusholaObikanye, reported that the bank had fully returned N113.49 billion to the Central Bank of Nigeria (CBN), comprising both disbursed and undisbursed funds.
Obikanye affirmed that Sterling Bank had no outstanding liabilities under the Anchor Borrowers Programme, stating, “We have a balance of zero-naira, zero-kobo owed under this scheme.”