The House of Representatives has commenced investigations into the alleged spending of over N1.12trn on the Anchor Borrowers scheme by former president Muhammadu Buhari.

Recall that Buhari had upon his inauguration in 2015, launched an agricultural enhancement initiative, through the Central Bank of Nigeria (CBN), aimed at creating an economic linkage between small farmers and large-scale agricultural firms in the country.

The House of Representatives Committee on Nutrition and Food Security, said on Wednesday that it would launch a probe into the N1.12 trillion spent on the programme.

The committee stated further it would examine the role of the NIRSAL Microfinance Bank, which was allegedly used to disburse N215 billion spent on agro-businesses as well as the Bank of Industry (BON) for disbursing N3 billion to 22,120 smallholder farmers through the agriculture value chain financing programme.

Chairman of the Committee, Hon. Chike Okafor, said this during an investigative hearing on the alleged misuse of government interventions and agricultural funding by departments, agencies, schemes, and programmes of the Federal Government.

The Imo state Rep also raised concern that, of the 24 Participating Financial Institutions (PFIs) who disbursed the amount for the APB, they only had evidence of nine institutions, while noting that one of the key oversight mandates of the committee is to ensure proper implementation of intervention programmes by relevant MDAs of government, related to food security and nutrition.

He said, “We are probing how the Central Bank of Nigeria through the Anchors Borrowers Programme disbursed about N1.12 trillion to 4.67 million farmers involved in either maize, rice or wheat farming through 563 anchors.

“The CBN should note: we are aware that you have about 24 participating financial institutions (PFIs) through which you disburse these humongous amounts. I am also aware that you have written to 24 of them but we have evidence of only nine. So, please note. And also, some of those PFIs have tried to make contact.

“Second point we are probing how NIRSAL disbursed N215, 066, 982, 074.50 so far to facilitate agriculture and agribusinesses, and also the Bank of Industry how you disbursed N3 billion to 22, 120 smallholder farmers through the agriculture value chain financing programme.”

“One of the key oversight mandates of the Committee on Nutrition and Food Security is to ensure proper implementation of intervention programmes by relevant Ministries, Departments, and Agencies (MDAs) and agencies of government related to food security and nutrition. Investigations, monitoring of resource allocation, advancement of new laws, and strengthening of existing ones among others, on matters related to nutrition and food security.

“These are comprehensively contained in the committee’s jurisdiction as captured in the standing order of the House. Please, note that nutrition and food security are twin issues that cannot be separated and have been on the front burner of the renewed hope agenda of the present administration.

“The creation of this committee on Nutrition and Food security is a legislative response to join forces with the executive arm of government and other stakeholders to tackle these issues and make Nigeria a food-secured and nourished populace,” he added.

Meanwhile, NIRSAL Microfinance Bank, had blamed insecurity as a major challenge to the successful implementation of their loan scheme.

Represented by one of its officials, Charles Bassey, the Micro Finance bank said the bank duly followed the laid down rules and guidelines, while trying to determine who was qualified to benefit from the intervention.

Bassey said, “It was based on those guidelines that we disbursed these funds. Some of the challenges that they have written about include insecurity challenges. A couple of them had pointed to the fact that, after they had invested the funds in agricultural business, they were not able to go back to the farms because of the experience of banditry and herdsmen.

“And these delayed their seasonal interventions and harvesting. Some also pointed to natural disasters such as flooding and drought which affected them. A few of them actually asked for restructuring of the loan facility to allow them time to repay accordingly,” Bassey said.

Group Head, Agric Finance and Solid Minerals, Sterling Bank, Olushola Obikanye, told the committee that a total sum of N113,490,756,332.54 was returned to the CBN after the scheme collapsed, adding that it not owing under the scheme.