CBN raises ABP's gurantee to 50 percent

• Disburses N200 billion in 2020 dry season farming 

The Central Bank of Nigeria (CBN), has approved additional incentives under its Anchor Borrowers Programme (ABP), through which it will share equal risks with smallholders farmers (SHFs).

 

This is expected to boost production and ensure food security in the country, while checking inflation tide, and slashing farmers risk portfolio from 75 to 50 per cent, and increase CBN’s collateral guarantee to 50 per cent up from 25 per cent.

The development is aimed at ensuring that farmers increased their productivity level to lower the component of food import into Nigeria.

The additional incentive was announced Tuesday at the launch of this year’s Dry Season Farming by the Director, Development Finance, CBN, Philip Yusuf. 

Yusuf told stakeholders, comprising maize, wheat, rice, and cassava farmers and processors that the apex bank was willing and open to suggestions that would help eliminate their challenges to boost productivity. 

Yusuf said: “I wish to welcome you all to this grand occasion with the primary objective of massive financing of farmers for the 2020 dry season cultivation as part of the bank’s intervention on some focal commodities. I am indeed excited about this meeting as it is very apt at this crucial period of our economic development, given the recent happenings in the country, including the COVID-19 pandemic, which you are all aware of. 

“Let me share some background on the ABP. The ABP emerged in 2015 to create a linkage between anchor companies involved in the processing and smallholder farmers (SHFs) of the key agricultural commodities. It is primarily used to finance farmers in groups and associations so that they will have all the inputs needed by them to reap bountiful harvest.