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CBN Queries UBA Over 1.5Billion Anchor Borrowers Loan Disbursement

The United Bank of Africa, UBA has been queried by the Central Bank of Nigeria (CBN) over the disbursement of N1.5 billion to 6000 farmers in Sokoto state under the Anchor Borrowers Programme of the apex bank meant to assist in rice production.

In a letter dated August 2, 2018, and signed by the Director, Development Finance Department, Dr M.A Olaitan, the apex bank accused UBA of non payment of suppliers, eight months after funds have been remitted into the bank for disbursement to the suppliers.

The letter reads: “Please recall that the Central Bank of Nigeria released the sum of N1,452,841,483.80 to your bank for on lending to 5,684 small holder farmers on the 15th of November, 2017 sequel to your application for fund having concluded precedent to drawdown;

The report made available by the Project Management Team (PMT) revealed that input suppliers have not been paid, eight months into the programme. Please note that this contravenes the guidelines of ABP.

Consequently, we advise that you discuss making payments from the cash collateral pledged by the State Government for inputs supplied through the cooperative accounts as recommended by the PMT.”

The farmers under the Agricultural Input Suppliers Forum had since April 2018, written a petition to the Minister of Finance, Mrs Kemi Adeosun, asking for her intervention over the disbursement of the funds.

In the letter signed by the Forum’s Executive Secretary, Paschal Ignatius Idogbe, it urged the Minister to intervene as the association members were facing critical situations as non disbursement has affected their productivity.

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