IMF: 76% of CBN loans to farmers unpaid

The International Monetary Fund has revealed that only 24 per cent of loans obtained by farmers through the anchor borrowers' programme of the Central Bank of Nigeria have been repaid, shedding light on the challenges facing the agricultural sector in the country. Emmanuel Ijewere, the President of the Nigeria Agribusiness Group, recently joined CNBC Africa to discuss this concerning data. In the interview, Mr. Ijewere highlighted the need for all stakeholders in the agricultural industry to come together to address the issues surrounding the repayment of these loans. He emphasized the importance of collaboration between the Central Bank, the Ministry of Finance, the Ministry of Agriculture, and agricultural associations to ensure the success of initiatives like the anchor borrowers' programme. Mr. Ijewere commended the Central Bank for initiating the anchor borrowers' programme, describing it as a brilliant idea that has the potential to positively impact the agricultural sector. However, he raised concerns about the lack of involvement of key players in the design and implementation of the programme, which may have contributed to the current repayment challenges. To address the existing issues and improve the effectiveness of the anchor borrowers' programme, Mr. Ijewere recommended restructuring the initiative to incorporate input from all relevant stakeholders. He emphasized the need for a collective effort to ensure the success of agricultural financing schemes in Nigeria. While the Central Bank plays a significant role in providing financial support to farmers through the anchor borrowers' programme, Mr. Ijewere suggested that other private or multilateral bodies could contribute to expanding access to finance for agricultural activities. By diversifying the sources of funding and involving multiple stakeholders, the agricultural sector could receive the necessary support to thrive. One key aspect that Mr. Ijewere addressed during the interview was the involvement of commercial banks in agricultural financing. He noted that commercial banks in Nigeria have been hesitant to participate fully in initiatives like the anchor borrowers' programme. He highlighted the need to incentivize commercial banks and improve their orientation towards agricultural lending to facilitate greater involvement and support. In conclusion, Mr. Ijewere emphasized the importance of collaboration, transparency, and accountability in advancing agricultural financing in Nigeria. By engaging all stakeholders, including government institutions, financial organizations, and agricultural associations, the country can work towards building a sustainable and successful agricultural sector that benefits farmers and the economy as a whole.