The House of Representatives Committee on Nutrition and Food Security has commenced a full-scale investigation into the alleged mismanagement and diversion of over N1.12 trillion allocated for key agricultural intervention programmes in Nigeria.The probe, which began on Tuesday in Abuja, centers around funds disbursed through the Anchor Borrowers Programme (ABP), alongside N215 billion handled by NIRSAL Microfinance Bank, and N3 billion disbursed by the Bank of Industry to over 22,000 smallholder farmers under the agriculture value chain financing initiative.
Speaking at the investigative hearing, the committee chairman, Hon. Chike Okafor, expressed concerns over the glaring lack of transparency in the implementation of these crucial programs designed to bolster Nigeria’s food security and nutrition landscape.
“We are examining how the Central Bank of Nigeria disbursed about N1.12 trillion through the Anchor Borrowers Programme to approximately 4.67 million farmers, largely focused on maize, rice, and wheat, via 563 anchor companies. Yet, only nine out of the 24 participating financial institutions have provided verifiable disbursement evidence,” Hon. Okafor stated.
He added that the committee’s mandate includes not only investigating financial accountability but also ensuring the effectiveness of food-related intervention policies and reforms across relevant government agencies and ministries.
“We are also reviewing how NIRSAL allocated N215 billion for agriculture and agribusiness, and how the Bank of Industry administered N3 billion to 22,120 smallholder farmers,” he said.
The committee emphasized the importance of aligning with the Renewed Hope Agenda of the current administration by tackling threats to food security and ensuring proper utilization of public funds.
Insecurity and Natural Disasters Impeding Recovery
A representative of NIRSAL Microfinance Bank, Charles Bassey, attributed poor repayment rates and project setbacks to widespread insecurity and environmental disasters.
“Many beneficiaries, after receiving funds and investing in their farms, couldn’t return to harvest due to attacks by bandits and herdsmen. Others faced losses from flooding and drought,” Bassey explained.
Some beneficiaries, he noted, have since requested restructuring of their loans to enable more realistic repayment timelines.
Sterling Bank Clears Its Records
In defense of its participation, Sterling Bank’s Group Head of Agric Finance and Solid Minerals, Olushola Obikanye, clarified that the bank had fully repaid all funds due under the ABP scheme.
“We have remitted a total of N113.49 billion to the Central Bank of Nigeria, comprising both undisbursed and refunded disbursed amounts. Sterling Bank currently holds zero liability under this programme,” Obikanye said.
As the hearings continue, lawmakers have pledged to uphold accountability, transparency, and the sanctity of public trust while working closely with stakeholders to ensure Nigeria’s agricultural development efforts are not undermined by corruption or negligence.
Further updates will be provided as the investigation progresses.
