How Farmers Diverted Billions Of Naira Under Anchor Borrowers’ Programme

A former presidential media aide during the administration of former President Muhammadu Buhari, Bashir Ahmad, has disclosed that several Nigerians who obtained federal government loans under the Anchor Borrowers’ Programme failed to utilize the funds for the expected reasons.

Ahmad pointed out that several farmers who benefited from the scheme diverted the funds to other sectors like oil and gas, bureau de change, and other luxury ventures.

The former presidential media aide made the revelation while responding to a challenge by a social media user, identified as Yakubu Wudil on 𝕏, who queried the decision of the current government to offer import waivers as part of measures to crash food prices.

Wudil argued that the government should have introduced measures such as subsidising fertilisers, gasoline, and providing modern farm equipment for the farmers.

In response, Ahmad recalled how many farmers obtained loans under the Anchor Borrowers’ Programme and diverted the funds. He added that some who used the funds for farming, hoarded their produce, waiting for prices to spike so they could make exaggerated profits, at the expense of the masses thus defeating the government’s intention of the programme.

“Billions of Naira were allocated to farmers with the goals of achieving food security, reducing poverty, and curbing unemployment and insecurity.

“Some farmers received loans running into billions, some even up to ₦6 billion, but instead of investing in agriculture, many diverted the funds to other sectors like oil and gas, bureau de change, and other luxury ventures.

“Those who actually farmed? After harvesting, they hoarded their produce, waiting for prices to spike so they could make exaggerated profits, at the expense of the same masses the initiative was meant to support,” he said.

Truetells Nigeria reports that the Buhari government introduced the Anchor Borrowers’ Programme (ABP) in 2015 to create a linkage between anchor companies involved in the processing of key agricultural commodities and Smallholder Farmers (SHFs).

In 2023, the Central Bank of Nigeria (CBN), said it disbursed N1.09 trillion under the programme since its inception.