Reps probe insurance scheme for N1.12tr Anchor Borrower scheme
The House Committee on Nutrition and Food Security has commenced an investigation into the insurance coverage provided for the N1.12 trillion Anchor Borrowers Scheme. The probe is part of a
The House Committee on Nutrition and Food Security has commenced an investigation into the insurance coverage provided for the N1.12 trillion Anchor Borrowers Scheme.
The probe is part of a larger investigation by the House into how the N1.12 trillion meant for the execution of the Anchor Borrowers Programme was allegedly diverted by Ministries, Departments and Agencies as well the disbursement of the fund as carried out by participating financial institutions (PFIs).
Managing Director, Nigerian Agricultural Insurance Corporation (NAIC), Dayo Babaronti who spoke at the commencement of the investigation said that the corporation only provided cover to 207,514 farmers to the tune of N109 billion under the Anchor Borrowers Scheme.
According to him, contrary to the Anchor Borrowers Scheme’s initial policy, under which NAIC was appointed as the sole insurance company to cover participants, the Central Bank of Nigeria (CBN contracted two other insurance firms, Veritas Kapital Insurance and Leadway Insurance to participate in the scheme.
However, Veritas Kapital Insurance and Leadway Insurance did not send representatives to the hearing.
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Babaronti said overall, NAIC only provided 12 per cent coverage for the scheme, adding that for Nigeria Incentive-Based Risk Sharing System for Agricultural Lending ( NIRSAL) Plc’s agricultural financing N250 billion facility to support smallholder farmers across the country, NAIC only provided cover to the tune of N8.254 billion.
He said the Corporation only provided N715 million worth of cover for 80 hectares of ginger farms out of the N1.6 Billion funding announced for the programme.
On the Bank of Industry, Agro and Food Processor Scheme, Babaronti told the Committee that NAIC was not given any of the participants to provide insurance cover, contrary to the Anchor-Borrower policy.
Earlier in his welcome address, Okafor reiterated that the House will uncover all the issues that hampered the successful implementation of Federal Government interventions targeted at improving food production in the country.
He disclosed that preliminary findings by the Committee indicate that stakeholders, especially farmers and farmer/commodity associations, were not involved in designing interventions such as the Anchor-Borrower Scheme, hence the unsatisfactory performance of the programme.
“The reason why we are here is because the programmes did not succeed 100 per cent. If they had succeeded 100 per cent, we will not be here”, the lawmaker said.
