Apply for CBN Anchor Borrowers Programme (ABP) 2021

Apply for CBN Anchor Borrowers Programme (ABP) 2021

Apply for CBN Anchor Borrowers Programme (ABP) 2021

The Central Bank of Nigeria (CBN) in line with its developmental function established the Anchor Borrowers’ Programme (ABP).

To apply go to https://www.cbn.gov.ng/abp-details

The Programme which was initiated by President Muhammadu Buhari (GCFR) on November 17, 2015, is planned to create a linkage between anchor companies involved in the processing and Small Holder Farmers (SHFs) of the crucial key agricultural commodities.

Apply for CBN Anchor Borrowers Programme (ABP) 2021
The programme thrust of the ABP is the provision of farm inputs in kind and cash (for farm labour) to smallholder farmers to increase production of these commodities, stabilize inputs supply to Agro-processors and address the country’s negative balance of payments on food.

At harvest, the SHF allowances his/her produce to the Agro-processor (Anchor) who disburses the cash equivalent to the farmer’s account.

The Programme evolved from the consultations with stakeholders including Federal Ministry of Agriculture & Rural Development, State Governors, millers of agricultural produce, and smallholder farmers to boost agricultural production and non-oil exports in the face of unpredictable crude oil prices and its resultant effect on the revenue profile of Nigeria.

Objective:
The broad purpose of the ABP is to establish economic linkage between smallholder farmers and reputable large-scale processors with a view to boosting agricultural output and significantly improving capacity utilization of processors. Other objectives include:

Boost banks’ financing to the agricultural sector;
Reduce agricultural commodity importation and conserve external reserves;
Increase capacity utilization of agricultural companies;
Create new generation of farmers/entrepreneurs and employment;
Deepen the cashless policy and financial inclusion;
Reduce the level of poverty among smallholder farmers;
Help rural smallholder farmers to grow from subsistence to commercial production levels.
Apply for CBN Anchor Borrowers Programme (ABP) 2021 Targeted Beneficiaries:

The loan shall be targeted at smallholder farmers committed in the production of identified commodities across the country. The Farmers should be in groups/cooperative(s) of between 5 and 20 for ease of administration.

Identified Agricultural Commodities:
The targeted commodities of comparative benefit to the states shall include but not limited to:

Cereals (Rice, Maize, Wheat etc.);
Cotton;
Roots and Tubers (Cassava, Potatoes, Yam, Ginger etc.);
Sugarcane;
Tree crops (Oil palm, Cocoa, Rubber etc.);
Legumes (Soybean, Sesame seed, Cowpea etc.);
Tomato;
Livestock (Fish, Poultry, Ruminants etc.);
And any other commodity that will be enlisted by the CBN from time to time.
TENOR
The tenor of loans under the ABP shall be the gestation time of the identified commodities.

REPAYMENT
Loans approved to the SHF’s shall be paid back with the harvested produce that shall be mandatorily delivered to the Anchor at the designated collection center in line with the provisions of the Agreement signed. The produce to be conveyed must cover the loan principal and interest.

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