National Food Security, Youth Empowerment & the Anchor Borrowers’ Programme
NATIONAL FOOD SECURITY, YOUTH EMPOWERMENT & THE ANCHOR BORROWERS’ PROGRAMME
Wale Akingbade
As a concerned citizen and an advocate for truth, transparency, and meaningful reform in our national food security and agricultural finance framework. The focus here is the Central Bank of Nigeria’s Anchor Borrowers’ Programme (ABP) a once-celebrated initiative that has unfortunately spiraled into controversy, inefficiency, and financial uncertainty.
Purpose and Vision of the ABP.
Launched in 2015 by the Central Bank of Nigeria, the Anchor Borrowers' Programme was conceived to:
Increase domestic food production.
Improve linkage between smallholder farmers and agro-processors (the “anchors”).
Reduce food imports and boost employment especially among the youth.
Over the years, it reached approximately 4.67 million farmers, disbursing an estimated ₦1.12 trillion through over 563 Anchor firms.
What's the Current Situation – Data Speaks
Disbursement & Repayment
₦1.12 trillion disbursed (as of June 2025).
₦670.47 billion repaid (52% repayment rate).
Approximately ₦450.9 billion still outstanding.
Initial repayment rates in early years were abysmally low around 24%.
Top Anchor Firms (some now under scrutiny):
RIFAN (Rice Farmers Association of Nigeria)
AFEX Commodities Exchange
Thrive Agric
MAAN (Maize Association of Nigeria)
Systemic Issues & Ongoing House of Reps Probe
In June 2025, the House of Representatives initiated a thorough probe into the implementation of the ABP following increasing reports of:
Poor documentation from Participating Financial Institutions (PFIs).
Illegal deductions by intermediaries.
Default and disputes between anchors and banks (e.g., AFEX vs GTBank ₦15.77bn default case).
Climate disruption, inflation, naira redesign, and insecurity affecting both production and repayment.
Sterling Bank notably repaid its loans in full, but many other banks are now under scrutiny. Investigations are ongoing, and further revelations are expected soon.
Regional Performance Snapshot
Kebbi State (Rice Pilot Phase): 5.5 tonnes/ha average yield. Generally successful.
Kwara State: 88% breach of loan terms, despite acceptable crop output.
Nasarawa State: Project underperformance due to climate and funding constraints.
Lagos (Badagry LGA): Pilot program ongoing; results pending, with early signs of coordination gaps.
Farmer Voices Mismanagement & Exploitation
Many smallholder farmers have raised alarm over:
Unexplained deductions by anchors and middlemen.
Non-receipt of inputs despite being listed as beneficiaries.
Poor access to extension services and delayed input delivery. Some were refunded partially following public outcry, but trust has been eroded.
The Bigger Picture Governance Breakdown
This is not merely a case of poor loan repayment. It is a national case study in:
Weak oversight.
Policy flip-flops.
Political interference.
Poor farmer database management.
Lack of enforceable penalties for fraudulent practices.
We must now ask: Who protects the smallholder farmer? Who checks the anchors? Who audits the PFIs?
Way Forward : What We Must Demand
As a stakeholder in Nigeria’s development, I strongly call for the following:
1. Immediate publication of all beneficiaries and anchors for public scrutiny.
2. Completion of the House of Reps probe and clear sanctions where violations occurred.
3. Reforms of loan tracking systems, using biometric-linked farmer IDs and digital land registries.
4. Independent auditing of PFIs and Anchor firms, starting with those flagged in the report.
5. Regional performance dashboards, so we can track where the programme worked and where it failed and why.
6. Youth-targeted agricultural entrepreneurship reform, not just mass enrolment schemes.
7. A fully transparent transition plan for integrating the ABP into any future agricultural funding initiative.
So for me, the Anchor Borrowers’ Programme was never a bad idea, but its noble goals were sabotaged by corruption, opacity, and weak policy execution. We must not throw the baby out with the bathwater, but we must hold those responsible accountable.
As Nigerians, we cannot build food security on a foundation of failed systems and concealed truths.
I urge the government to act swiftly and wisely.
Let us build a new agricultural future where technology, transparency, youth inclusion, and good governance are the anchor—not just in name, but in reality.
Thank you, and may God bless the Federal Republic of Nigeria.
Wale AKINGBADE.
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