Anchor Borrowers Programme (ABP)

Anchor Borrowers Programme (ABP)

....this is an initiative by CBN aimed at increasing local production, supply of feedstock to processors of commodities, reduce import bills and conserve foreign reserves. Under the Scheme Anchor Companies (Processors) will work with Out-growers involved in production. The finance model will involve the Anchor Firms, CBN and NDE will organize the Out-growers and ensure that they comply with contractual terms agreed at a Stakeholders town hall meeting.

....the NDE will be the Platform through which small-holder farmers (Out-growers) participating as registered Co-operatives are organized into clusters and linked to anchor firms.

NDE's Role is to

    ......Identify a Commodity in which the State has comparative advantage;  Register small-holder farmers into Co-operatives; Register the co-operatives (if not already done); Organize the registered Co-operatives by clusters; Engage participating banks, input-suppliers, off-takers and NAIC; Ensure individual farmers open Bank Accounts with participating Banks (all Out-growers should have a BVN); Compute Average Cost of Production of 1Ha of the commodity (please note that this will be agreed upon at the town-hall meeting) as the loan package; Organize the town-hall meeting with all stake-holders present to agree on the MOU which will be signed; Set-up the Project Management Team (PMT); Organize training; Execute the MOU and implement Monitoring & Compliance.

Stakeholders include:

·         NDE (Platform)/Organizer

·         CBN  representative in the State

·         Anchor miller

·         Off-takers

·         Input Suppliers

·         Farmer Co-operatives (especially women & youths)

·         All Farmers Association in the State

·         Farmers Association of the crop of choice

·         Representative of NAIC

·         Representative of Ministry of Co-operative/Agric

·         Representative of participating Banks

Thanks

Faruq F. (B.Eng)