The Central Bank of Nigeria (CBN) in line with its developmental function established the Anchor Borrowers’ Programme (ABP). The Programme which was launched by President Muhammadu Buhari (GCFR) on November 17, 2015 is intended to create a linkage between anchor companies involved in the processing and small holder farmers (SHFs) of the required key agricultural commodities. The programme thrust of the ABP is provision of farm inputs in kind and cash (for farm labour) to small holder farmers to boost production of these commodities, stabilize inputs supply to agro processors and address the country’s negative balance of payments on food. At harvest, the SHF supplies his/her produce to the Agro-processor (Anchor) who pays the cash equivalent to the farmer’s account.
The Programme evolved from the consultations with stakeholders comprising Federal Ministry of Agriculture & Rural Development, State Governors, millers of agricultural produce, and smallholder farmers to boost agricultural production and non-oil exports in the face of unpredictable crude oil prices and its resultant effect on the revenue profile of Nigeria.
The broad objective of the ABP is to create economic linkage between smallholder farmers and reputable large-scale processors with a view to increasing agricultural output and significantly improving capacity utilization of processors. Other objectives include:
- Increase banks’ financing to the agricultural sector;
- Reduce agricultural commodity importation and conserve external reserves;
- Increase capacity utilization of agricultural firms;
- Create new generation of farmers/entrepreneurs and employment;
- Deepen the cashless policy and financial inclusion;
- Reduce the level of poverty among smallholder farmers;
- Assist rural smallholder farmers to grow from subsistence to commercial production levels.
The loan shall be targeted at smallholder farmers engaged in the production of identified commodities across the country. The Farmers should be in groups/cooperative(s) of between 5 and 20 for ease of administration.
Identified Agricultural Commodities:
The targeted commodities of comparative advantage to the State shall include but not limited to:
- Cereals (Rice, Maize, wheat etc.);
- Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.);
- Tree crops (Oil palm, Cocoa, Rubber etc.);
- Legumes (Soybean, Sesame seed, Cowpea etc.);
- Livestock (Fish, Poultry, Ruminants etc.);
- Any other commodity that will be introduced by the CBN from time to time.