₦1.1Trn Anchor Borrowers’ Loan Default: Tinubu Orders Security Agencies To Recover Cash Before Sept 18

President Bola Tinubu has directed security agencies to take all necessary measures to recover the huge amount of government money from the defaulters on or before September 18, 2023 so as to make the cash available to genuine farmers who want safe loans for more food production.

Out of the ₦1.1 trillion disbursed by the CBN to the beneficiaries of the ABS since its inception, only a little above ₦546 billion has been repaid while a whopping balance of ₦577 billion remains unaccounted for.

At the meeting with security agencies in Abuja, the president was very upset when he was told that one of the CBN’s subsidiaries was among the defaulting banks, holding up vital cash that was meant for farmers to improve their production and ensure food security in the country.
the president was told that a subsidiary of the CBN and a commercial bank in the country, had diverted ₦255 million which they were supposed to give out to farmers and others in dire need of loans to improve their production.

Some of the beneficiaries refused to refund the loan as and when due, claiming that they did not make serious returns on their investments and needed more time to be able to pay back to the apex bank, not minding the terms of the deal they had earlier signed.

Many banks’ directors and managers had already been interrogated on the huge loans saga and that many of them had admitted to securing the said loans and the alleged breaches regarding the repayment.
“I can tell you authoritatively that we have written to all the defaulters and many bank officials have confessed of their role in the huge loan scandal and they are willing to take necessary steps to pay back the loans,We have also written to all the debtors and some of the banks, whose top managers we have already summoned and grilled, have assured us that they will refund the cash outstanding in their names on or before the September 18 deadline,” A source said.

Maize Producers Association took a loan of ₦39 billion from the CBN under the ABP, it has been able to refund a total of ₦23 billion while Cotton farmers took a loan of ₦14 billion and has been able to refund ₦5 billion so far.