Anchor Borrowers: North-east farmers’ flag off recovery of CBN loan

The North East Commodity Association (NECAS) has flagged off the repayment of loan and handover of farm produce to Commodity Depot and Exchange Centre (COMDEC) under the Central Bank of Nigeria (CBN) Anchor Borrowers Programme. The farmers, through NECAS, an umbrella body of farmers in the North East geo-political zone, were at the beginning of […]

The North East Commodity Association (NECAS) has flagged off the repayment of loan and handover of farm produce to Commodity Depot and Exchange Centre (COMDEC) under the Central Bank of Nigeria (CBN) Anchor Borrowers Programme.

The farmers, through NECAS, an umbrella body of farmers in the North East geo-political zone, were at the beginning of farming season provided with fertilizer, herbicides and seedlings under the CBN’s Anchor Borrowers Programme (ABP) through the Bank of Agriculture (BOA), with the agreement to pay back with their farm produce after harvest.

In a welcome address, the Gombe State Chairman of NECAS, Alhaji Ahmed Muhammed Dukku, said more than 8, 000 farmers have benefited from the N9 billion loan granted to the association and they were able to recover over 30, 000 bags of farm produce from them.

“Since we began the recovery of the farm produce in Gombe last January, we are getting at least 600 bags of sorghum, maize, soya beans and cotton from our farmers daily. We are expecting to pay the CBN 40 per cent of the loan granted to each farmer as agreed in the MoU signed with the apex bank,” he said.

He added that the farmers have appreciated the efforts of the federal government hence they are willingly paying back the loan with their farm produce.

“This pyramid you are seeing and all the stores behind us here are filled to the brim with produce that have been collected from farmers that have benefitted from the Anchor Borrowers Programme, through NECAS.

On daily basis, we are receiving nothing less than 600 to 700 bags from farmers across the 11 local government areas of the state,” Ahmed Dukku said.

Speaking at the ceremony the National Chairman of NECAS, Alhaji Sadiq Umar Daware, expressed optimism that with the level of cooperation from their members, the association may exceed the 40 per cent they have promised to pay for the first farming cycle.

“Giving loan to farmers alone cannot bring about success of the programme. But monitoring, supervision and giving these farmers knowledge on best agricultural practices, so that they can have maximum yield, is key to this programme.

“That is why we have deployed the services of extension agents in our programme and empowered them with motorcycles and vehicles to go round and monitor what the farmers are doing in order to make sure they paid back the loan.

“I am happy to announce that these extension workers have done wonderfully well,” Daware said.

The Chairman of COMDEC, Alhaji Musa Yahaya Umar, assured that payment for the farm produce will be made after the handing over process of the produce is completed.

He said the COMDEC will continue undertake delivery of all the farm produce that was produced by the farmers across the North East region under the NECAS platform.

In his speech, the Managing Director of Bank of Agriculture, Dr Kabir Mohammed Adamu, commended farmers in the state for paying the loan with their farm produce.

He said the bank was looking at the possibility of opening additional branches in the state to bring it closer to the people, especially those in the rural areas.

Dr Adamu assured the bank’s commitment to increase its support to the farmers to help in providing the needed food security in the country.

On its part, the CBN commended NECAS for paying back loan granted to them.

The apex bank’s Director of Development Finance, Mr Mudashiru Olaitan, represented by Mr Edwin Nzelu, said it was the first time an association that benefitted under the anchor borrowers programme gathered people to flag off repayment of loan granted by the CBN.

“I commend the NECAS because it was unprecedented for an association to gather people to flag-off collection of repayment, not only just repayment, but paying back in the quantity of 40 per cent of what they have taken,” he said.

Olaitan added that in appreciation of their honesty in repaying the loan granted to them, the development finance department will continue to support  NECAS by tripling the facilities that was made available to the farmers in 2018.

The director added that the CBN will work with NECAS in the recovery of the remaining balance of 50 per cent and increase the number of benefitting farmers in order to eliminate poverty in the country.

In his address, Governor Ibrahim Hassan Dankwambo, commended the federal government for initiating the anchor borrower’s programme, saying over 21, 000 hectares of farm lands were cultivated by farmers in the state who participated in the programme.

He added that that his administration would continue to provide security to farmlands, especially during harvest of farm produce to avoid encroachment by herdsmen.

He said his administration would also continue to give support to farmers through provision of fertilizer and other inputs to produce enough food, thereby creating food security and employment.