The now-suspended Anchor Borrowers’ Programme (ABP) of the Central Bank of Nigeria (CBN) has been declared a failure by the All Farmers Association of Nigeria (AFAN), with its National President stating that the initiative lacked the structural integrity and transparency required to genuinely support smallholder farmers and agribusinesses.
AFAN disclosed that it distanced itself from the programme from the outset, having assessed that it would not deliver long-term value to small-scale farmers or strengthen Nigeria’s agricultural base. “As AFAN, we did not participate in the programme because our initial analysis showed us that the scheme was going to fail. It was not going to work,” said the association’s president, reinforcing long-standing concerns about the design and execution of the scheme.
Launched in 2015 under former CBN Governor Godwin Emefiele, the ABP was intended to accelerate food self-sufficiency by providing credit and input support to smallholder farmers. Official figures suggest that over four million farmers involved in 21 different commodities benefitted from the programme. However, agricultural stakeholders argue that the initiative was marred by structural flaws, limited inclusion, weak loan recovery, and insufficient monitoring mechanisms.
Despite disbursing more than ₦1 trillion over the years, the programme struggled to deliver on its promises. With a loan repayment rate of just 40 percent and a default rate approaching 60 percent, the scheme fell short of expectations around financial sustainability, empowerment, and productivity growth in the sector. Many of the intended beneficiaries, particularly genuine smallholder farmers, were reportedly sidelined or left unsupported, while politically connected actors exploited the system with little accountability.
Kebram highlighted the influence of political interference and mismanagement, citing the legal troubles currently facing former Governor Emefiele as evidence of deeper issues within the scheme. “He [Emefiele] is in jail because of this and still has problems because of the money that was used there,” he stated, adding that the fallout from the ABP reflects a broader failure in how agricultural interventions have been managed at the national level.
The current CBN leadership under Governor Yemi Cardoso has since halted all interventionist programmes, including the ABP, and has pledged to adopt a more market-aligned and accountable framework for development finance. This policy shift marks a departure from previous strategies that relied heavily on government-driven credit initiatives with minimal oversight or private sector integration.
The collapse of the ABP has reignited urgent calls for a new approach to agricultural finance—one that is SME-focused, transparent, and aligned with the realities of smallholder farming. Stakeholders are advocating for models that incorporate value chain linkages, access to markets, training, and strong monitoring systems to ensure that credit reaches genuine farmers and is used productively.
The failure of the ABP has further underlined the critical role that inclusive financing models play in achieving food security, rural economic development, and job creation. Analysts believe that future interventions must be anchored in collaboration with credible farmers’ associations, private sector stakeholders, and cooperatives to build systems that work beyond paper promises.
With Nigeria’s agricultural sector facing persistent challenges—from inflation and insecurity to climate change and outdated infrastructure—the need for efficient, scalable, and people-centred financing solutions has never been more urgent
