Recover N1.1 Trillion CBN Loan Immediately – Tinubu

President Tinubu has called upon top security agencies in Nigeria to take all necessary actions to recover the substantial sum of N1.1 trillion from defaulters of the Central Bank of Nigeria (CBN) Anchor Borrowers’ loan.

The President has set a firm deadline for this recovery, demanding that it be completed on or before September 18, 2023.

The CBN Anchor Borrowers’ loan program was established to provide support to farmers by offering safe loans for the enhancement of food production in Nigeria. However, out of the N1.1 trillion disbursed by the CBN to beneficiaries since the program’s inception, only a little over N546 billion has been repaid. A staggering balance of N577 billion remains unaccounted for, prompting President Tinubu’s decisive action.

During a meeting with security agencies in Abuja, the President expressed his deep concern and frustration over the situation, particularly when he learned that one of the CBN’s subsidiaries was among the defaulting banks. This revelation highlighted the urgency of recovering the substantial funds that were intended to bolster farmers and ensure food security.

It was also revealed that a subsidiary of the CBN, in conjunction with a commercial bank in the country, had diverted N255 million, funds that were meant to be disbursed to farmers and individuals in need of loans to enhance their production capabilities.

Some of the beneficiaries, it was reported, have refused to repay the loans as agreed, citing inadequate returns on their investments and requesting additional time to fulfill their obligations to the apex bank. Despite the terms of the loan agreements they entered into, they have delayed repayment.

As part of the effort to recover the outstanding loans, many bank directors and managers have already been interrogated regarding their roles in the loan saga. Numerous banking officials have confessed to their involvement in securing these loans and the associated issues regarding repayment.

A source close to the situation revealed, “I can tell you authoritatively that we have written to all the defaulters, and many bank officials have confessed of their role in the huge loan scandal and they are willing to take necessary steps to pay back the loans. We have also written to all the debtors, and some of the banks, whose top managers we have already summoned and grilled, have assured us that they will refund the cash outstanding in their names on or before the September 18 deadline.”

This situation has prompted various agricultural stakeholders to review their repayment records. For example, the Maize Producers Association, which received a N39 billion loan through the CBN Anchor Borrowers’ Program, has successfully refunded a total of N23 billion. Likewise, Cotton farmers, who borrowed N14 billion, have repaid N5 billion to date.

President Tinubu’s directive underscores the government’s commitment to ensuring the responsible and transparent use of funds allocated to support agricultural production and promote food security in Nigeria. The recovery of these substantial funds from defaulters will enable their redirection to genuine farmers and further stimulate agricultural growth in the country.