CBN Has Revealed The Actions It Will Take Against Farmers Who Do Not Repay Their Loans

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Farmers who fail to repay loans obtained through the Central Bank of Nigeria’ s Anchor Borrowers Program will be prohibited from applying for future loans and would have their promised collateral foreclosed, according to the bank.

This was stated by the Development Finance Department of the Central Bank of Nigeria in its amended ABP Guidelines, which were announced on Friday.

” Failure to repay facility as and when due will result in suspension from accessing new facility until the existing facility is recovered; call- in the personal guarantee of the leadership; and foreclosure on any pledged collateral, ” the document stated.

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The Central Bank of Nigeria (CBN) has promised to take severe action against beneficiaries who divert cash. If the association and its leadership are blacklisted by the CBN from all interventions, the leadership will be prosecuted by participating financial institutions, and the guarantors/cooperatives/commodity and association would be required to return the loan, according to the central bank.

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It stated that the anchor will no longer engage in the ABP or any other CBN interventions because of its failure to procure high- quality food from producers.

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An anchor, according to the Central Bank of Nigeria, is a fully registered organization that has the ability to offtake produce or output at agreed pricing.

According to the central bank, the ABP’ s overarching goal is to establish economic ties between smallholder farmers and processors with the goal of increasing agricultural output while maintaining food price stability.

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According to the organization, the amended rules addressed current realities and advancements in the program, with the goal of fostering best practices in the program’ s execution.

Therefore, the Central Bank of Nigeria (CBN) has called on farmers to repay their loans so that the Anchor Borrowers’ Programme can continue to operate successfully (ABP).

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Godwin Emefiele, the governor of the Central Bank of Nigeria, made the appeal while announcing the harvest aggregate for the 2020 wet season and flagging off the 2021 wet season input distribution in the South- West geo- political zone of Ekiti State.

He explained that under the Anchor Borrowers’ Programme, every farmer with a good repayment record would be eligible to receive a solar home system, which would provide electricity to power their essential household appliances.

Source: Mcebiscoo.com

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