Following the disbursement of N36 billion loan advanced to farmers through the Northeast Commodity Association (NECAS) under the Anchor Borrowers Programme of the Federal Government, the Central Bank of Nigeria (CBN) has set up a task force to recover the loan.

The Chairman of NECAS, Sadiq Daware, who inaugurated the task force, emphasized the need for the farmers to return the loans disbursed to them in due time. He urged them to take advantage of cultivating variety of crops in the next farming season.

Talking about the ABP, Daware said it was a well-structured programme that would benefit all farmers as no farmer would incur any loss even in the event of natural disaster.

CBN sets up committee to recover N36 billion credit facility 

“With relative peace in Borno State, we are optimistic that at the end of the programme, we will be able to make substantive recovery. We expect to recover at least 80% of the loan to the farmers.

“They are about starting harvesting now and that is why we have invited all stakeholders, including the extension agents, with a view to inaugurating committee that can go and follow these farmers so that they can repay the loans.

“Repayment of the loan will definitely allow for the continuation of the programme.  If farmers receive loans without paying back, then definitely, the programme cannot be sustained.”

[READ MORE: CBN’s N132.56 billion T-bills auction records oversubscription by 327%]

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Also speaking on the loan repayment, Development Finance Officer of CBN, Maiduguri Branch, Mahmud Nyako, said that repayment of the loan varied from commodity to commodity and from hectare to hectare.

According to Nyako, the farmers who default on the loans without their crops suffering any natural cause or disaster would be prosecuted. He urged any farmer hat experienced natural disaster to report the incident to enable them to benefit from the window created by CBN for such loss.

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