Cbn issues guidance for anchor borrowers progamme abp to punish violators

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CBN Issues Guidance for Anchor Borrowers Programme (ABP) to Punish Violators

The Central Bank of Nigeria (CBN) has issued a circular to guide the implementation of the Anchor Borrowers Programme (ABP) and to punish violators of the programme's rules and regulations.

The ABP is a flagship programme of the CBN aimed at increasing agricultural production and productivity in Nigeria. The programme provides financial assistance to smallholder farmers to enable them to access credit facilities at a single-digit interest rate.

In the circular, the CBN emphasized the need for strict compliance with the programme's guidelines and regulations to ensure its success. The bank warned that any farmer or institution that violates the programme's rules and regulations will be punished accordingly.

Some of the key guidelines issued by the CBN include:

  1. Eligibility criteria: Only smallholder farmers who meet the programme's eligibility criteria, including having a minimum of 2 hectares of land, will be eligible to participate in the programme.
  2. Loan repayment: Farmers are required to repay their loans within the stipulated period, which is usually 12 months. Any farmer who fails to repay their loan on time will be considered a defaulter.
  3. Interest rate: The interest rate for the ABP is 9% per annum, which is lower than the commercial interest rate.
  4. Loan disbursement: Loans will be disbursed to farmers through participating banks and other financial institutions.
  5. Monitoring and evaluation: The CBN will monitor and evaluate the programme's performance regularly to ensure its success.

The CBN also warned that any farmer or institution that engages in fraudulent activities, including falsifying documents or misrepresenting information, will be prosecuted and punished accordingly.

The ABP is a critical programme aimed at promoting agricultural development in Nigeria. The CBN's guidance is expected to ensure the programme's success and promote agricultural growth in the country.