The House of Representatives Committee on Nutrition and Food Security has begun investigations into the insurance cover for the N1.12 trillion Anchor-Borrowers’ Scheme.
The Chike Okafor-led committee is investigating how the N1.12 trillion meant for the execution of the Anchor Borrowers Programme was allegedly diverted by Ministries, Departments and Agencies, as well the disbursement of the funds as carried out by Participating Financial Institutions (PFIs).
Speaking at the resumed hearing Friday in Abuja, the representative of the Managing Director of the Nigerian Agricultural Insurance Corporation (NAIC), Dayo Babaronti, said the Corporation only provided cover for 207,514 farmers to the tune of N109 billion under the scheme.
He disclosed that contrary to the scheme’s initial policy under which NAIC was appointed as the sole insurance company to cover participants, the Central Bank of Nigeria (CBN) contracted two other insurance firms, Veritas Kapital Insurance and Leadway Insurance.
However, Veritas Kapital Insurance and Leadway Insurance did not send representatives to the hearing, even as Babaronti noted that overall, NAIC only provided 12 per cent coverage for the scheme.
He said for Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc’s agricultural financing of ₦250 billion facility to support small-holder farmers across the country, NAIC only provided cover to the tune of N8.254 billion.
The Committee chair, Okafor, earlier reiterated that the House would uncover all the issues that hampered the successful implementation of the scheme.
“Why we’re here is because the programmes did not succeed 100 per cent. If they had succeeded, we wouldn’t be here,” he said.
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