House of Representatives Expands Probe into N1.12 Trillion Anchor Borrowers Programme
The House of Representatives has significantly broadened its ongoing investigation into the N1.12 trillion Anchor Borrowers Programme (ABP), issuing summons to key insurance firms and agencies over alleged deficiencies in the implementation of this major agricultural intervention scheme. This expansion comes as the House Committee on Nutrition and Food Security, led by Chairman Chike Okafor (APC, Imo), intensifies its scrutiny into how funds were disbursed and managed.
Insurance Framework Under Scrutiny
During a recent hearing, the committee focused on the insurance framework supporting the ABP, particularly examining the roles of the Nigerian Agricultural Insurance Corporation (NAIC) and private insurers. A representative for the Managing Director of NAIC, Dayo Babaronti, disclosed that the corporation provided coverage to only 207,514 farmers, amounting to N109 billion under the scheme. He revealed that, contrary to the original policy designating NAIC as the sole insurer, the Central Bank of Nigeria (CBN) engaged additional firms such as Leadway Insurance and Veritas Kapital Insurance for parts of the intervention.
This arrangement resulted in NAIC covering approximately 12 percent of the programme, raising serious concerns about the adequacy of risk protection for beneficiaries. Chairman Okafor highlighted that preliminary findings indicate many federal agricultural interventions were developed without sufficient input from farmers and commodity groups, a gap that may have contributed to implementation challenges and allegations of fund diversion.
Adamawa Governor Advocates for Revenue Reform
In a related development, the Governor of Adamawa State, Ahmadu Fintiri, has called for a more realistic and democratic revenue-sharing formula to tackle developmental issues at state and local council levels. While receiving a delegation from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) at Government House in Yola, Fintiri emphasized that the current allocation system no longer aligns with present-day realities.
He pointed out that state governments are increasingly burdened with responsibilities such as infrastructure development, education, healthcare, and security. Fintiri argued that a review of the revenue formula is long overdue, urging the commission to recommend a fairer system to better support subnational governments. He expressed confidence that strengthening states and local councils would reduce pressure on the federal government and enhance service delivery, assuring full cooperation with the ongoing review process.
RMAFC's Nationwide Data Verification Exercise
The leader of the RMAFC delegation, Commissioner Mohammed Ismail representing Kwara State, explained that their visit is part of a nationwide effort to verify and update data used in revenue allocation among the three tiers of government. Backed by constitutional provisions, this exercise aims to ensure the revenue-sharing formula reflects current socio-economic realities, including population changes, infrastructure development, and emerging national challenges.
This comprehensive probe and advocacy for fiscal reform underscore ongoing efforts to address transparency in agricultural funding and equitable resource distribution across Nigeria.
