QUICK LOAN ARENA reports that the Central Bank of Nigeria (CBN) has disbursed N948bn loan to farmers under the Anchor Borrowers Programme (ABP), in February 2022.
According to the apex bank, there is a need for insurance cover for farmers under the programme.
Central Bank of Nigeria disburses N948bn under Anchor Borrowers Programme (ABP)
CBN Governor, Godwin Emefiele, was quoted in a statement on Friday as saying: “Specifically, under the Anchor Borrowers Programme (ABP), we have disbursed N948bn to 4,478,381 smallholder farmers who cultivated 5.2 million hectares of farmland across the country, thereby creating 12.5 million direct and indirect jobs”.
The apex bank assigned the duty of providing covers and assessing risk of farmers under the Anchor Borrowers Programme (ABP) to the underwriting firms.
The Development Finance Department of the CBN disclosed this in its revised Anchor Borrowers Programme (ABP) guidelines.
Underwriters Should Provide Insurance Cover For The N948bn Loan From The Anchor Borrowers Programme (ABP)
According to the guidelines, the underwriters should provide insurance cover for the projects; ensure timely processing and settlement of claims; provide technical assistance to farmers on insurance policies; and monitor projects for early warning signals or red flags.
The CBN said they should “render periodic report on farm conditions; serve as member of the project management team; and carry out any other responsibilities as may be prescribed by the CBN from time to time.”
The revised Anchor Borrowers Programme (ABP) guidelines addressed current realities and developments aimed at promoting best practice in its implementation.
The CBN recognised the distinctiveness of smallholder farmers, the ABP transactions dynamics and the project management team in the implementation process.
It also adopted measures to ensure the protection of smallholder farmers.
According to the CBN, the broad objective of the Anchor Borrowers Programme (ABP), is to create economic linkages between smallholder farmers and processors with a view to increasing agricultural output and ensuring food price stability.
