Nigeria’s Central Bank, over a decade ago, launched the Anchor Borrowers’ Programme (ABP) with grand aspirations: to uplift smallholder farmers, boost agricultural output, and reduce reliance on food imports.
Designed to link farmers with large-scale processors through access to finance and resources, the ABP promised to transform the nation’s agricultural landscape. However, nearly a decade later, the programme is mired in controversy, plagued by allegations of corruption, mismanagement, and widespread unrecovered debts threatening the very sector it aimed to support. This is the story of how a seemingly sound initiative devolved into a staggering loss of public funds, raising critical questions about accountability, political will, and the future of agricultural development in Nigeria, reports Saturday Independent.
In November 2015, the Central Bank of Nigeria (CBN) launched the Anchor Borrowers’ Programme (ABP) with lofty ambitions: to empower smallholder farmers, boost agricultural productivity, and wean the nation off its dependence on food imports.
The programme, conceived to foster economic linkages between farmers and large-scale processors, initially focused on key commodities like cereals, roots, tubers, and legumes. By providing access to finance, agricultural inputs, and training, the ABP aimed to transform Nigeria’s agricultural landscape.
But nearly a decade later, the programme stands mired in controversy, plagued by allegations of corruption, mismanagement, and a staggering lack of accountability.
With over ₦1.09 trillion disbursed, and only a fraction recovered, the ABP is rapidly becoming a symbol of elite impunity and political cowardice, threatening to undermine the agricultural sector it sought to uplift.
The core concept of the ABP was seemingly sound. The CBN envisioned an ecosystem where smallholder farmers, often excluded from traditional lending institutions, could access the resources needed to scale up their operations.
“The ABP’s primary goal is to create an ecosystem that connects smallholder farmers with large-scale processors, thereby increasing agricultural output and reducing reliance on food imports,” the CBN stated in its initial programme outline.
Farmers were to receive loans, farm inputs, and capacity building, with the harvested produce serving as repayment. The programme was heralded as a potential game-changer, promising to increase agricultural productivity, farmers’ income, reduce poverty, and create jobs.
However, the dream quickly unravelled, morphing into a nightmare of misappropriated funds, political patronage, and systemic failures.
According to former presidential aide Bashir Ahmad, a significant portion of the ABP funds was diverted away from agriculture entirely.
“Some farmers received loans running into billions of naira but instead of investing the money in agriculture, many diverted the funds to other sectors like oil and gas, bureau de change, and other luxury ventures,” Ahmad revealed on X (formerly Twitter). This diversion of funds, coupled with reports of beneficiaries hoarding produce to manipulate prices, paints a grim picture of a programme riddled with abuse.
The statistics are equally damning. While the CBN claims a repayment rate of over 52%, the International Monetary Fund (IMF) reported a recovery rate of only 24%. As of May 2025, a staggering ₦311 billion in loans remained unpaid, igniting public outrage and triggering investigations by the House of Representatives and other oversight bodies. However, many remain skeptical about the effectiveness of these investigations, citing a history of stalled probes and political interference.
The failure to hold defaulters accountable is a central point of contention. Critics point to weak enforcement mechanisms, poor oversight, and a lack of political will as the primary reasons why those who misappropriated ABP funds have largely escaped justice.
“Anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) have been accused of selective prosecution, while several investigations have stalled due to alleged political interference,” said a source.
The sluggish judicial process, often compromised by bureaucracy and corruption, further compounds the problem.
The allegations of political interference resonate deeply within Nigeria’s complex power dynamics. According to an All Progressive Congress (APC) stalwart, who requested anonymity, many “portfolio farmers” secured loans through political connections without ever investing in agriculture. “It was a genuine programme that was epically messed up. If a proper probe is carried out, a lot of powerful and well-connected people in the North and across Nigeria will be exposed. That’s why they’re keeping quiet. They’d rather let sleeping dogs lie.” This sentiment is echoed by a senior official from the Ministry of Agriculture, who claimed that major defaulters hail from “magic states” – regions that consistently deliver large vote counts for ruling parties.
The official fears that any attempt to enforce repayment or initiate prosecutions could trigger political backlash ahead of future elections. “You think the Presidency doesn’t know about the billions that disappeared? They have the facts. But they won’t take the bull by the horns. This matter is deep. I won’t say more.”
The All Farmers Association of Nigeria (AFAN) and the Nigeria Agribusiness Group (NABG) believe the ABP was flawed from the beginning.
“Government can recover these loans if it truly wants to. The CBN has the records. The EFCC has the power. But the question is, will they grow the balls to do so?” asks Arc. Kabir Ibrahim, President of AFAN and NABG. According to Ibrahim, the scheme failed to replicate the U.S. agricultural model.
“I warned those I could to avoid the loans because the intention wasn’t pure. Those who knew they could abscond with the money cashed in. The programme was poorly planned, incubated, sealed, and executed from Abuja. Major stakeholders and real farmers were sidelined.
“The All Farmers Association of Nigeria did not directly benefit from the loans. We realised, ab initio, that the scheme was not well thought out and was full of black holes as implemented by the Central Bank.
“Eventually, wheat was removed and other crops were added without any consultation with AFAN. When we analysed it, we found it was nothing like the U.S. model it was supposed to copy.
“Well, the government is already pursuing the issue. The Economic and Financial Crimes Commission (EFCC) and the National Assembly are investigating the issues beyond Godwin Emefiele. If well handled, it could finally deal with the menace of portfolio farmers in Nigeria.”
The lack of due diligence in loan disbursement is another major concern. Alhaji Sidi, an ABP beneficiary who openly admitted to not being a farmer, secured a loan through political connections.
“It’s good to know people.
Screening wasn’t tedious. Some people even showed rice farms of other local farmers to the CBN. Due diligence was weak. You know, the former Nigerian apex bank chief, Emefiele, wanted to join politics from the start. Every of his action and policies were tailored towards his ambition. Remember we bought him a form to contest for president and donated vehicles?”
Another beneficiary, Suleiman, was even more blunt, stating, “As a Northerner and ruling party member who had never benefited from Nigeria before the late former President Buhari came to power, I have no intention of paying back. That money was our share of the national cake.”
These brazen admissions highlight a culture of impunity that has permeated the ABP. The fact that no high-profile probes have been launched and that the EFCC remains largely inactive despite public confessions of fraud fuels public anger and distrust. Even within the National Assembly, there is a sense of frustration and resignation.
“Mr. Okifo, don’t mention my name. But I can assure you the House is doing something. Are we slow? Yes, but, of a truth, the situation is dirty. Too many big men have their hands in the cooking jar,” revealed a member of the House Committee on Finance.
The consequences of the ABP scandal are far-reaching, contributing to soaring food inflation, broken credit systems, and disrupted supply chains. Despite the scale of the problem, no systemic reforms have been introduced to prevent a recurrence. The Centre for Democracy and Development (CDD) put it succinctly.
“The whole programme was a fraud dressed as policy.”
Many ABP beneficiaries have become millionaires, investing their ill-gotten gains in the hospitality industry, oil and gas, and forex trading. Some have even relocated abroad, abandoning Nigeria altogether. The CBN’s silence on the issue, coupled with the quiet scrapping of the CBN’s Development Finance Department, further deepens the sense of opacity and lack of accountability.
The question now is, what next? Can the ABP be salvaged, or is it destined to become a cautionary tale of corruption and mismanagement?
Arc. Kabir Ibrahim believes that the solution lies in naming, shaming, and recovering the misappropriated funds, regardless of who is involved. He also advocates for involving all stakeholders in the design of a new, people-oriented programme.
The pursuit for answers and accountability continues. Contact attempts to Hon. James Faleke, Chairman of the House Committee on Finance, Ebun Adegboruwa (SAN), and the CBN’s information desk yielded no response.
While the challenges are immense, analysts insist that recovering the unpaid loans would be a significant win for Nigeria’s struggling economy.
The critical ingredient, however, is political will – the courage to confront powerful interests and prioritise the nation’s well-being over party loyalty. Without such resolve, the Anchor Borrowers’ Programme will remain a stark reminder of how good intentions can be corrupted by greed, impunity, and the enduring curse of political opportunism.
