CHAPTER ONE
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BACKGROUND
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 supply his/her produce to the Agro-processor- the 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.
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Objective
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.
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Targeted Beneficiaries
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.
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Identified Agricultural Commodities
The targeted commodities of comparative advantage to the State shall include but not limited to:
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Cereals (Rice, Maize, wheat etc.)
Cotton
Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.)
Sugarcane
Tree crops (Oil palm, Cocoa, Rubber etc.)
Legumes (Soybean, Sesame seed, Cowpea etc.)
Tomato
Livestock (Fish, Poultry, Ruminants etc.)
Any other commodity that will be introduced by the CBN from time to time.
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Eligible Participating Financial Institutions (PFIs)
The loan shall be disbursed through any of these PFIs:
Deposit Money Banks (DMBs)
Development Finance Institutions (DFIs)
Microfinance Banks (MFBs)
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The Anchor
This shall be private large-scale integrated processors who have entered into an agreement with the SHFs to off-take the harvested produce at the agreed prices or as may be reviewed by the PMT. State Governments may act as Anchor upon meeting the prescribed conditions.
- Inputs Suppliers
The input suppliers shall submit expression of interest letter to the office of the PMT for consideration and issuance of local purchase orders.
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Central Bank of Nigeria published this content on 04 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 04 January 2017 12:07:10 UTC.
Original documenthttp://www.cbn.gov.ng/Out/2017/CCD/Anchor Borrowers Programme Guidelines 02-01-17.pdf
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