Wheat Farmers Urge CBN to Review Borrower Scheme

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has been urged to allow commercial banks participate in its Anchor Borrowers programme aimed at improving agricultural sector in the country.

This appeal was made by the Wheat Farmers Association of Nigeria (WFAN) in Kano in an interview with the News Agency of Nigeria (NAN) on Monday.

According to the state WFAN Chairman, Mr Faruk Rabi’u, reviewing the policy on 50 percent risk sharing formula will encourage many commercial banks to partake fully in the programme.

He told the news agency that, “CBN insisted that all commercial banks wishing to participate must bear 50 per cent risk and this prompted most of the commercial banks to withdraw from the programme.

“The policy has seriously affected the implementation of the programme in the state.

“Even though the Bank of Agriculture took over, that has not solved the problem because it has no banking platform.”

He pointed further that, “It is also the policy of the bank that it will not disburse the loan for production of a particular commodity until the one given for another commodity is paid.

“This is the reason why wheat farmers are yet to receive the loan until rice farmers pay their outstanding loan.”