CBN Disburses N12.65bn to Anchor Borrowers Programme in First Two Months of 2023

In the first two months of 2023, the Central Bank of Nigeria (CBN) has allocated N12.65 billion to the Anchor Borrowers Programme (ABP), a primary agricultural intervention initiative, according to Governor Godwin Emefiele. During the 290th meeting of the Monetary Policy Committee (MPC) in Abuja on Tuesday, Mr Emefiele revealed the cumulative disbursement under the ABP since its launch in 2015 by President Muhammadu Buhari's administration is N1.09 trillion. 

He stated that “the bank disbursed N12.65 billion to three agricultural projects during the January-February 2023 period, bringing the cumulative disbursement under the programme to N1.09 trillion for over 4.6 million smallholder farmers rearing or cultivating 21 agricultural commodities on 6.02 million hectares of approved farmland”.

The CBN Governor attributed the economy's improved performance to sustained growth in the agricultural and service sectors, as well as a recovery in economic activities, due to continued intervention in growth-enhancing sectors by the apex bank. He also mentioned that the CBN disbursed significant sums as an intervention in several other areas of the economy. 

Eight new real sector projects in agriculture, manufacturing, and services received N23.70 billion from the N1.0 trillion Real Sector Facility, according to Mr Emefiele. Cumulative disbursements under the Real Sector Facility have reached N2.43 trillion, benefiting 462 projects in the country, including 257 manufacturing, 95 agriculture, 97 services, and 13 mining sector projects.

Furthermore, the CBN disbursed N3.01 billion under the Nigerian Electricity Market Stabilisation Facility (NEMSF-2) for capital and operational expenses of electricity distribution companies (Discos), according to the Governor. The facility aims to enhance the Discos' liquidity status and assist them in recovering their legacy debt. 

The Governor stated that the cumulative disbursement under the facility is now N254.39 billion.

Overall, The continued disbursement of funds by the Central Bank of Nigeria (CBN) through various intervention programmes is expected to have a significant impact on the country's economy. The Anchor Borrowers Programme (ABP), for instance, is aimed at boosting agriculture production, reducing food importation and enhancing job creation in the sector. 

The programme has proven successful, with over 4.6 million smallholder farmers rearing or cultivating 21 agricultural commodities on 6.02 million hectares of approved farmland, thereby significantly increasing Nigeria's food production capacity. The cumulative disbursement of N1.09 trillion under the ABP since its inception by President Muhammadu Buhari's administration in 2015 is a testament to its success.