How To Easily Access Loans from CBN’s Anchor Borrowers’ Programme
Welcome to Flippstack, In this article, we will be walking you through how you can access Loans from the CBN’s Anchor Borrowers’ Programme, so if you are a Farmer that needs a Loan to boost your Agriculture productivity, make sure you read until the end.
You may also want to read Five (5) Federal Government Loan Programmes That Application is Currently Ongoing in 2021
About CBN’s Anchor Borrowers’ Programme
The Anchor Borrowers’ Programme (ABP) was launched by President Muhammadu Buhari (GCFR) on November 17, 2015, through the Central Bank of Nigeria (CBN) in line with its developmental function to create a linkage between anchor companies involved in the processing and smallholder farmers (SHFs) of the required key agricultural commodities.
The programme thrust of the ABP is the provision of farm inputs in kind and cash (for farm labour) to smallholder farmers to boost production of these commodities, stabilize inputs supply to agro-processors and address the country’s negative balance of payments on food.
Since the launch of the scheme in 2015, 3.8 million farmers have so far benefited from the Anchor Borrowers’ Programme (ABP), as N554.61 billion has so far been disbursed to the beneficiaries through the programme since its inception.
You may also want to read NMFB Loan Calculator: How To Easily Calculate Your NMFB Loan
Objective Of CBN’s Anchor Borrowers’ Programme
The broad objective of the ABP is to create economic linkage between smallholder farmers and reputable large-scale processors with a view to increasing agricultural output and significantly improving the capacity utilization of processors.
Other objectives include:
1. Increase banks’ financing to the agricultural sector
2. Reduce agricultural commodity importation and conserve external reserves
3. Increase capacity utilization of agricultural firms
4. Create a new generation of farmers/entrepreneurs and employment
5. Deepen the cashless policy and financial inclusion
6 Reduce the level of poverty among smallholder farmers
7. Assist rural smallholder farmers to grow from subsistence to commercial production levels.
Interest Rate
Interest Rate under the ABP shall be guided by the rate on the N220 billion MSMEDF, which is currently at 9% p.a (all-inclusive, pre and post disbursement). The PFIs shall access at 2% from the CBN and lend at a maximum of 9% p.a.
Targeted Beneficiaries
The Anchor Borrowers’ Programme is targeted at smallholder farmers engaged 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
- 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.)
You may also want to read CBN Launches Loan Recovery Scheme Under Anchor Borrowers’ Programme
How To Easily Access Loans from CBN’s Anchor Borrowers’ Programme
To access Loans from CBN’s Anchor Borrowers’ Programme, the most important first step is to be a member of a farming union that falls under the scheme including the Rice Farmers Association and Maize Association of Nigeria.
1. Visit Nirsal Portal: https://nmfb.com.ng/
2. Click on the Anchor Borrower programme link and Go through the details & requirements to apply
6 thoughts on “How To Easily Access Loans from CBN’s Anchor Borrowers’ Programme”