Maize Association of Nigeria Seeks Support from EFCC and Other Agencies to Recover Outstanding Loans

Strategic Insights -

The Maize Association of Nigeria (MAAN) has enlisted the support of the Economic and Financial Crimes Commission (EFCC), the Department of State Services (DSS), and the Nigeria Police to recover outstanding loans from the Anchor Borrowers Programme (ABP) owed by its members. The move comes after a three-day meeting with stakeholders in the maize value chain, where MAAN's National President, Bello Abubakar, announced their efforts to retrieve loans disbursed to members between 2018 and 2021. Abubakar explained that the ABP is designed as a revolving loan, and its sustainability depends on farmers repaying what they borrowed. However, many participants have failed to honor their repayment obligations, leading to widespread non-compliance.

Key Takeaways:

  • MAAN has enlisted the support of the EFCC, DSS, and the Nigeria Police to recover outstanding loans from the Anchor Borrowers Programme (ABP).
  • The loans were disbursed to MAAN members between 2018 and 2021 for maize production under the ABP.
  • Abubakar noted that many participants treated the funds as a free handout, failing to repay what they borrowed.
  • MAAN has sent multiple demand letters to defaulters and initiated legal action against some defaulters.
  • The association has identified severe challenges facing its members, including insecurity and natural disasters such as flooding and drought.
  • Abubakar appealed to the federal government to create a supportive environment for smallholder farmers to repay their loans.
  • He also requested a waiver or reduction of the outstanding ABP loans due to the hardships faced by farmers.

Statistics:

  • The ABP was disbursed to MAAN members between 2018 and 2021.
  • The Association has identified insecurity and climate-related disasters as major challenges facing its farmers.
  • The following states have been affected by flooding: Kogi, Benue, Cross River, Jigawa, Katsina, Taraba, Niger, Kebbi, and Kwara.
  • The following states have been affected by drought: Oyo, Kwara, Niger, Ondo, Ekiti, and Benue.
  • Abubakar has initiated legal action against some defaulters, with several cases still ongoing in court.

Sources:

  • The Maize Association of Nigeria
  • The Economic and Financial Crimes Commission
  • The Department of State Services
  • The Nigeria Police
  • The Anchor Borrowers Programme (ABP)
  • Central Bank of Nigeria (CBN)
  • President Bola Tinubu's administration