CBN Urged by Senate to Retrieve ₦1.079 Trillion in Anchor Borrowers’ Loans

The Senate has called upon the Central Bank of Nigeria (CBN) to initiate the recovery process for the ₦1.079 trillion allocated as loans to farmers under the Anchor Borrowers’ Programme.

The ₦1.079 trillion disbursed to farmers as loans under the Anchor Borrowers’ Programme was part of the ₦30 trillion extended to the ex-President Muhammadu Buhari-led administration as overdraft by the CBN between 2015 and 2023.

Senator Jibrin Isah (APC – Kogi East), Chairman of the Senate’s Ad-hoc Committee investigating the ₦30 trillion overdraft to the Federal Government during the previous administration, directed the CBN to debit commercial banks responsible for loan disbursement.

Senator Isah issued the directive during an investigative hearing organized by the committee, following discussions with CBN officials led by Deputy Governor, Corporate Services, Bala Bello, regarding the low loan recovery rate.

Addressing reporters, Isah emphasized the need for loan recovery, stating, “We can’t continue restructuring loans indefinitely. We must pursue repayment and enhance loan recovery efforts. For delinquent borrowers, we should consider interest rate caps, focusing primarily on principal repayment. These loans are likely backed by collateral, ensuring the banks’ security.”

CBN Deputy Governor, Bala Bello, expressed the current management’s commitment to recovering outstanding loans, acknowledging past deficiencies in supervision under the previous CBN administration led by Godwin Emefiele.

Bello stated, “The new CBN management is dedicated to recovering these funds as they belong to taxpayers. It’s regrettable to address questions on past practices, but we’re working diligently to rectify the situation. There’s room for improvement.”

Regarding the ₦30 trillion Ways and Means, Senator Isah, also Chair of the Senate Committee on Customs, criticized the former CBN Governor, Godwin Emefiele, for breaching the CBN Act by unilaterally approving loans without consulting the Committee of Governors, the statutory approving authority.

“Under the Ways and Means, the Committee of Governors should have been consulted for approval. However, the former CBN Governor bypassed this process by granting unilateral approval. We demand transparency on the total Ways and Means figure and its allocation,” Isah remarked.