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Manufacturers seek expansion of CBN’s borrowers programme

Manufacturers seek expansion of CBN’s borrowers programme


Image result for Manufacturers seek expansion of CBN's borrowers programmeManufacturers Association of Nigeria has called on the Apex bank to expand its Anchor Borrowers Programme to boost production.

The ABP introduced by the CBN is to boost domestic food production and save the country’s capital outflow on food import.

MAN President, Frank Jacobs, said the initiative has influenced the agricultural sector of the economy.

He added that ABP goal was to create economic linkages between over 600,000 small holder farmers and large-scale processors.

In the same vein, the Wheat Farmers Association of Nigeria (WFAN) in Kano has also called on the Central Bank of Nigeria (CBN) to allow commercial banks to participate in the Anchor Borrowers programme.

The state WFAN Chairman, Faruk Rabi’u, made the call in an interview with the News Agency of Nigeria (NAN) in Kano.

According to him, reviewing the policy on 50 per cent risk sharing formular will encourage many commercial banks to partake fully in the programme.

“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 flatform,” he said.

He said the delay in the disbursement of the loan by CBN would also affect wheat production in the state.

“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.”


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