The CBN’s claim that it loaned N1 trillion to smallholder farmers across the country under the Anchor Borrowers’ Programme (APB), to boost food security, has come under the hammer from the supposed beneficiaries in Ogun State. TAIWO ALIMI reports.
MRS. Adekemi Adeife thought her farming struggles were over when the Anchor Borrowers’ Programme (ABP) was brought to her doorstep during the 2020 COVID-19 lockdown.
It did not take long before the story began to change.
Recounting her experience, the 62-year-old native of Awa Ijebu in Ijebu-North Local Government Area of Ogun State, said: “When my nephew introduced the programme to me, and that government would be giving farmers money to farm, I was happy. I love farming. I’ve been farming with my money for more than 10 years. I saw it as an opportunity to expand.”
She thought of securing a bigger farmland.That prompted her to move to neighbouring Ago Iwoye in the same Ogun State, where she got three acres.
Her joy knew no bounds and expectations soared.
“We were advised to look for farmland as it was a prerequisite for getting a loan. I paid N50,000 for three acres of farmland. They also promised us pesticides, herbicides, fertilizer, and saplings such as cassava stems and seedlings.”
The first shocker soon hit her when the supposed loan came,a far cry from the half a million naira she was expecting.
“ When the money eventually came it was a paltry N23,000 paid into my WEMA Bank account. That was what many of us got. This was in 2020,” she said.
“I had to leave the farm. I financed the little work I did that year to the tune of N150,000. I did not get any fertilizer, pesticides, or seedlings.”
Mrs. Adeife was expecting N500,000 from the ABP under the supervision of the Central Bank of Nigeria (CBN), the country’s apex bank in conjunction with the World Bank and the Federal Ministry of Agriculture.
GOALS OF ABP
The Federal Government of Nigeria launched the ABP in 2015, to create a link between anchor companies involved in the processing of crops and smallholder farmers (SHFs) of the required key agricultural commodities. The programme thrust of the ABP is the provision of farm inputs in kind and cash (for farm labour) to SHFs to boost the production of Rice, Maize, Wheat, Cotton, Roots, Cassava, Potatoes, Yam, Ginger, Sugarcane Oil palm, Cocoa, Rubber, Soybean, Sesame seed, Cowpea, Tomato, Fish, Poultry, and Ruminants; and stabilize inputs supply to agro-processors to address the country’s negative balance of payments on food.
At harvest, the SHF supplies his/her produce to the agro-processor (Anchor) who pays the cash equivalent to the farmer’s account.
According to the CBN, the ABP is expected to improve the capacity of SHFs.
The CBN claimed the programme evolved from consultations with stakeholders comprising the Federal Ministry of Agriculture & Rural Development, State governors, millers of agricultural produce, and SHFs.
FARMERS’ REALITY
In reality, ABP failed to achieve these set-out goals in Ogun State, one of the Southwest states with enormous agro business capacity, due to its large expanse of farmlands.
Like Mrs. Adeife, Banjo Asajueda, a.k.a Baba Awogi, another beneficiary of ABP in Ogun State, has a sad story to tell about the scheme.
The 70-year-old who ended up having high Blood Pressure (BP) and no farm said he will never forget the year 2020.
“ I’ve not recovered from the setback,” he said..
“When our names came out, I began to pursue the money. We were told that a tractor would come to our farm three times before harvest; that we would receive three containers of pesticide and fertilizer. I waited for months and the planting season was almost over and yet nothing came.
“I had to go to LAPO (Microfinance Bank) for a loan of N200,000 in the hope of paying back when I got the ABP money. By the time the chemical arrived, my farm had been overgrown by weeds making the chemical useless. As much as I used it wasn’t effective until I mixed it with another chemical.
“A tractor also came to work on the farm once without consultation with me. When I challenged the contractor, Gbenga he just told me that he wasn’t responding to me but to the government that gave him the contract.
“So, there was no cordial relationship between the contractor and farmers. The same thing happened with the cassava stems. They just called me around 1 AM one day while sleeping to inform me that cassava stems had arrived. They just dropped the stems there and farmers were told to go there and take them. There was no consultation.
“I had to collect another loan from LAPO making a total of N400,000 to work on the farm. Unfortunately, thieves and herders did not allow me to reap the fruits of my labour. Thieves came overnight to cultivate my cassava, while herders destroyed the rest. I had to sell my ancestral land to pay the bank when the harassment was much
“My BP rose as I became worried. I lost my farm and became indebted and sick. I have not returned to the farm since that incident due to falling health.”
MORE TALES OF WOE
Another female farmer Mrs. Adeyinka Babajide whose farm is located in Ijebu Igbo said she got N210,000 from ABP in 2020 with some pesticides and no tractor service.
Recalling her experience,she said:“ The cassava stems they brought were all dried up by the time they got to us. Second, the money I was given was little. It was not sufficient to cultivate half of my farmland. When the ABP Monitoring Team came to my farm, they saw it themselves. I received N210,000 for three acres of farmland. When I complained they said the rest of the money had been given to us in kind. Yet, all I got was dry cassava stems and four containers of herbicide.
“I had to abandon the farm because the money could not complete the project. The farm was taken over by weeds and I lost all the crops.
“It was later that we started hearing that each farmer ought to have been given N500,000;that government officials and contractors had taken their share of the money; and what they gave us was what was left. It is not supposed to be like that if the government wants to tackle food insecurity.
“If I had got N500,000 it would have been okay for me. That would have been sufficient to clear the land, buy cassava stems, sow, cultivate, and buy chemicals, and pay for harvest. I spend N4000 on transportation each time I go to the farm.
“Imagine the number of times I have to go there. These are things the government did not consider. And because the money was not sufficient, I had to abandon the farm. I doubt if anyone else in my vicinity benefitted from the ABP.”
Biodun Ogunjimi, Ogun State Secretary of the Farmers Council Association of Nigeria, confirmed that the ABP failed in Ogun state.
He said:“We have made our feelings known to the federal government and we condemn in totality the outcome of ABP. The programme is laudable and fantastic but the implementation is faulty.
“Out of the 23,000 cassava farmers that were captured in Ogun State, it will interest you to note that only 800 actually and actively participated. The margin is too much. It is not a success story at all. It is a failure.”
Oladele Awoleri, former ABP coordinator in Ijebu North, also scored implementation of the programme low in his area.
The CEO of Golden Crown Agricultural High School Awa Ijebu, said: “For Ijebu North, the programme did not achieve food security. Of the 200 names on the list that was sent to me, we found out that only 84 were legitimate farmers. The first major issue was the invasion of herdsmen. Out of 80 farmers, 42 complained of herders. Secondly, drought affected the farming session. Thirdly, the operations were faulty because farmers complained about allocation of herbicides and pesticides. They should have given the farmers money to buy the chemicals.
“As it were, it is possible that CBN will not be able to get neither money nor crops from farmers due to all these complaints. Also, the goal of the scheme, that of food security could not be achieved. Many of the smallholder farmers will not even sell to government.”
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MORE PROBLEMS
Asked how much each beneficiary ought to have received,Awoleri said: “In the books, it’s supposed to be N210,000 per farmer but part of the money comes in kind. The argument is that if some of these farmers were given physical cash, they would not use it to farm.So the money came in the form of seedlings, chemicals, and tractors to work on farms. All these were contracted out.
“As for the tractors,the job was given to companies that have tractors in the locality. From the N210,000, a certain amount of money was deducted from the source, about N45,000 for tractor to work on each farm three times. Then, instead of the farmers to begin to look for money to buy pesticides and herbicides, they contracted it out to companies to supply them That money will also be deducted from the source. They also contacted out cassava stems to another company to supply the TNB419 variety.
“But, a certain amount, approximately N32,000, was supposed to be given to each farmer. Out of this may be bank charges will be taken and that is why farmers may get N31,500 or less. The money is for transportation, harvesting, and some other things. It is expected that farmers would harvest themselves. That is why you see somebody saying that it is only N24,000 that he/she was given.”
Awoleri, was, however, quick to point out areas of compromise and inefficiency which led to the failure of ABP.
His words:“Where the problem lies is that some of the contractors short-changed some farmers, and some were in complicit with the farmers.
“Instead of going to their farm to work three times, the contractor would go there once and give the farmer N5000. He would now ask them to lie that he came to their farm three times. So, some farmers are also part of the problem. Some of the contractors’ cheated farmers and the farmers blamed the government for it.”
UNDERHAND DEALS
Ogunjimi put the blame squarely on the doorstep of CBN.
“It is interesting to note that some CBN officials are culpable accomplices. But the bulk of the blame was put at the doorstep of the leaders of the national association. However, this is just to cover up their shortcomings.
“ For example, the supply of the fertilizers to be used for the programme in Ogun State was contracted to companies in Kano, Katsina, and Kano. Are there no service providers in Ogun State that could be given the job, thereby empowering the local companies?”
Many of the farmers also complained of the insincerity of the CBN, their representatives, and contractors for underhand deals and short-changing of farmers in Ogun State.
Mrs. Adeife said: “If government said it wanted to give farmers money and it was some people who are not farmers that were ‘eating’ it, I’ve made up my mind to put my mind off any government money and do the little I can with my money. If I see N250,000, it will go a long way.”
According to Awoleri: “most of the farmers in Ijebu North and Yewa did not get more than N35,000. The highest was N210,000. Many of them complained that tractors did not come to their farms and they did not get chemicals too. Some of them received only N24,000.”
Another problem is coordinators manipulating the list of beneficiaries. There were thousands of ineligible people registered as farmers thereby displacing real farmers.
“The problem is that they simply brought people who were not farmers in and they all went in droves to collect form claiming they were farmers. Many of them are artisans: mechanics, vulcanizers, tailors, traders, commercial tricycles, and motorcycle riders. The bona fide farmers were not given the opportunities. So, when the list came out and we moved out for inspection we found that many were not qualified. They didn’t even have land to farm.
“At that point, we had to sectionalise the project. Under Ijebu North we have Awa Ijebu, Ago Iwoye, Ijebu, and Ijebu Igbo. So, I went to the paramount rulers to ask for land. Though tedious, we got hectares of land but they were not tractorable land and we could only bring a few real farmers to the land.”
Baba Awogi accused Olatunde Gbenga, CEO of Global Feeders, one of the contractors given contract to plough in Ijebu North LGA, as a culprit in this regard.
He said:“We were told that tractor would work on our farm at least three times and the contract was awarded to one Olatunde Gbenga, CEO of Global Feeders. I know him very well. I accosted him once but he rebuffed me saying he was only responsible to the government.”
When The Nation contacted Gbenga, he denied the allegation and blamed climate change for the poor harvest. “Climate change made nonsense of government efforts because by the time the ABP money came, the rain did not fall and a lot of farmers had projected that the money would come earlier. It affected crops adversely making them dry up.
“This was as a result of climate change and that is why Ogun governor has met with CBN governor to revisit the scheme in the state. At least do something for those who did not get much. As I speak with you the CBN is making plans to revisit the issue.”
CLIMATE CHANGE
Awoleri admitted that drought played a part in disrupting the scheme.
“It is true that climate change killed a lot of crops. By the time the money was ready, rain did not fall. It was in September that it started to rain. By this time farmers who had cultivated their lands expecting rain in March had to rush back to work; then the rain stopped again, and all their crops dried up.
“In 2020, a meeting of all coordinators was called in Abeokuta with CBN, Ministry of Agriculture, and Cassava Growers Association. It was said that all the farmers that were affected be given another year to benefit from the programme. Unfortunately, this did not happen.”
ABP A SUCCESS
Despite the many complaints, CBN described the ABP as a resounding success.
The apex bank claimed that about 2.85 million farmers benefitted from the ABP from 2016 to 2020.
According to figures obtained from the CBN, N554.63bn was disbursed, of which N61.02bn was allocated to 359,370 dry season farmers.
The CBN also stated in its last October monthly report that under the Anchor Borrowers’ Programme, the sum of N1.9bn was disbursed to 2,521 farmers to cultivate 8,963 hectares of land through three participating financial institutions.
The report, however, failed to give details of disbursement to each state and the number of farmers that benefited from each state.
CBN GOT IT WRONG
Ogunjimi disputed the CBN’s figures and impact, claiming that Ogun State had little or nothing to show for the scheme.
He said:“We have met with the CBN. We submitted detailed complaints about our experience with the programme. It is a failure and many farmers across the state share my opinion.”
National President of The All-Farmers Association of Nigeria (AFAN), Arc. Kabir Ibrahim also queried CBN’s claim.
“The programme would have been more impactful if the real farmers and stakeholders were carried along.”
He said there was little or no consultation with the private sector before the ABP was commenced, adding that the implementation pattern was not comprehensive enough to have the desired effect on the agricultural landscape of the country.
“For example, how many farmers were consulted when they were starting the ABP? How many real operators were involved or contacted? Even in disbursing the monies, how many real farmers benefited? How do we know that all the beneficiaries were genuine farmers?”
He also complained of policy inconsistencies and lack of continuity, saying successive CBN governors always have different agendas in the area of fiscal interventions.”
The AFAN president called for institutionalization of the ABP, adding that the Ministry of Agriculture is better positioned than the CBN to manage the scheme henceforth.
OPERATION NO MERCY
Going forward, the CBN said it has begun an aggressive drive to recover the loans it gave out under the ABP.
Yusuf Yila, director of development finance of the CBN said: “Every person(s) or state that took that loan (ABP) is going to pay. We have their BVN.”
Such persons referenced by Yila are smallholder farmer , who received funds for farming from state governments via the ABP, but have yet to pay them back.
“If a state government has taken N1 billion and is already in default, over six months, we debit them N150 million every month.
“So, every single loan that has been given out through any of our intervention programmes must be paid back.
“There is absolutely no mercy. We have started; we are in recovery mode. At the development finance department, we have begun to recover the loans.”
“There is the ABP which is a primary consumption element of our interventions. We lent out N1 trillion for the ABP of which we have gotten over N400 billion back.
“Every single person or state that took that loan (ABP) is going to pay. We have their BVNs. We have started implementing the Global Standing Instruction (GSI).
“We will continue to pull the account in the bank that they lent to or whichever bank that they have the account. Anytime we see money in that account, we will recover it.
“We are working with the EFCC. The CBN governor has approved the collaboration with the EFCC on loan recoveries.”
FARMERS NO LONGER HAVE FAITH IN ABP
Reacting to the CBN threat, Awoleri said genuine farmers such as Baba Awogi and Mrs. Adeife, that have been dealt serious blows with the failure of ABP, would suffer more.
“Genuine farmers will no longer collect government loan and what it means is that the money will continue to flow into the wrong pockets and the goal of the programme to facilitate food security would have been defeated.”
He enjoined the federal government to re-evaluate the ABP to refocus its implementation.
Awoleri was a beneficiary of another agricultural intervention scheme that robbed him of more than N8 million.
“These programmes are troubled with dishonesty, bribery, and corruption and it is the real farmers that are suffering from the lapses. If food security must be achieved, then the loan must go to sincere SHFs and not contractors, politicians, or bankers.
“Out of N9.9m approved for my project, I was able to pull out only N650,000. That is out of the N900,000, that they claimed came out. For you to get anything out, you have to grease palms,” Awoleri added. a