By Nneka Nwogwugwu
The All Farmers Association of Nigeria (AFAN) has urged the Central Bank of Nigeria (CBN) to resolve issues surrounding the suspension of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) loans to farmers, so as to avert impending food crisis.
Dr Femi Oke, AFAN’s Chairman, South-west Zone, told the News Agency of Nigeria (NAN), in Lagos, that the suspension of the NIRSAL loans would have greatly impact on food production in the country.
Oke urged the CBN to investigate the allegations against NIRSAL, without undermining various efforts of the farmers in achieving food security and self sufficiency.
He said that many farmers were disappointed over the sudden suspension of the Anchor Borrowers Programme (ABP) and NIRSAL loans, as the programme provided a lot of support to smallholder farmers.
Naturenews recalls that CBN recently suspended all loans being disbursed by NIRSAL, following widespread allegations of corruption by it’s officials.
The agency’s flagship ABP and its Chief Executive, Aliyu Abdulhameed, have been rocked by charges of endemic graft in recent months.
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The CBN’s suspension of further disbursement of loans by NIRSAL to farmers was contained in a correspondence of March 10, following the Feb. 24 meeting where the decision to pause further loan disbursements was reached.
The memo said the decision would only be reversed after all outstanding loans disbursed to farmers, through NIRSAL had been paid.
According to Oke: “when we heard about the suspension of NIRSAL loans, none of the farmers was happy. We knew immediately that this is not good for the farmers and the sector.
“Government should have taken the bull by its horn by auditing the NIRSAL boss, Aliyu Abdulhameed. It shouldn’t have affected the disbursement of loans to farmers.
“From what we heard, the suspension is based upon the ABP.
“We want CBN to lay more emphasis on how it will go about it, because some of the farmers have done their interview on NIRSAL loans, while some others are awaiting disbursement of funds to them.
“What will be their fate now? This is not too good and we implore government to look into that area and address it,” he said.
Oke urged the federal government to intervene, in order not to jeopardise the efforts of farmers that had already invested on their farms, and those that were already waiting for the loans to enable them prepare for the planting season.
