Complete Guide to Applying for the CBN Anchor Borrowers Loan
The Anchor Borrowers’ Program (ABP) is an initiative by the Central Bank of Nigeria (CBN) to boost agricultural production, empower smallholder farmers, and ensure food security in Nigeria. The program provides loans to farmers at a single-digit interest rate, offering essential input, support, and market linkages through cooperatives and designated Anchors. Below is a detailed guide to help you successfully apply for the ABP loan.
1. Objectives of the Anchor Borrowers Program (ABP)
The program aims to:
- Increase agricultural productivity and reduce food imports.
- Support smallholder farmers with access to credit and inputs.
- Foster economic development by reducing rural poverty and unemployment.
- Strengthen value chain linkages between farmers and processors (Anchors).
2. Loan Details
Loan Amount
The amount accessible under the ABP varies based on:
- The crop you cultivate.
- The size of the farmland.
- Input requirements and market price expectations.
Farmers typically receive between ₦250,000 to ₦500,000 per hectare. This amount covers the cost of inputs (e.g., seeds, fertilizers, and agrochemicals), labor, and other farm activities.
Interest Rate
Loans are disbursed at a single-digit interest rate of 9% per annum, with potential government subsidies reducing it further.
Moratorium Period
The moratorium (the period before repayment begins) depends on the crop cycle. For example:
- Short-cycle crops (e.g., rice, maize): Moratorium matches the growing and harvest period, typically 6-12 months.
- Long-cycle crops (e.g., oil palm, cocoa): Moratorium may extend to several years based on the gestation period.
Repayment Terms
Farmers repay the loan by supplying their produce to designated Anchors at agreed prices. The proceeds are used to offset the loan, and any surplus is paid to the farmer.
3. Eligibility Requirements
To qualify for the ABP, you must meet the following criteria:
- Be a Nigerian citizen actively involved in agriculture.
- Cultivate at least one hectare of farmland or belong to a cooperative with sufficient farmland.
- Grow targeted crops, which vary by region (e.g., rice, maize, wheat, cotton, tomato, cassava, and oil palm).
- Be part of a registered cooperative or cluster group (minimum of 5-20 farmers per cooperative).
4. Registration Process
Step 1: Join a Cooperative or Cluster Group
The ABP operates through cooperatives, which help streamline application and disbursement.
- Form or join a registered cooperative society of at least 5 to 20 members.
- Ensure the cooperative has proper documentation, such as bylaws and membership lists.
Step 2: Gather Required Documents
Applicants must provide:
- Personal Information: National ID (NIN), Voter’s Card, or Driver’s License.
- Bank Details: Bank Verification Number (BVN) and account details.
- Farm Details: Proof of farmland ownership or lease agreement.
- Cooperative registration details.
- Passport photographs.
Step 3: Visit a Participating Institution
The ABP loans are disbursed through the following financial institutions:
- Deposit Money Banks (DMBs).
- Microfinance Banks (MFBs).
- Non-Governmental Organizations (NGOs).
- State and Local Government Programs.
Visit one of these institutions to collect and submit your loan application form.
Do these if you owe any bank and are not able to pay back
Step 4: Verification and Disbursement
After submitting your application:
- Officials will conduct a farm verification to assess land viability.
- Disbursement of inputs or funds will follow approval.
5. State Offices and Focal Points
Each state in Nigeria has a designated ABP focal office. Below are some examples:
Northern Nigeria Offices
- Kano: CBN Branch Office, Kano.
- Kaduna: CBN Branch Office, Kaduna.
- Borno: CBN Branch Office, Maiduguri.
Southern Nigeria Offices
- Lagos: CBN Branch Office, Lagos.
- Rivers: CBN Branch Office, Port Harcourt.
- Edo: CBN Branch Office, Benin City.
Farmers are encouraged to visit the nearest CBN branch or participating institution in their state to get specific contact details.
6. Conditions for the Loan
Farmers must agree to the following conditions:
- Use the funds or inputs strictly for farming activities specified in the loan agreement.
- Sell their produce to the designated Anchor.
- Maintain proper records of farming activities and input usage.
- Cooperate with loan monitors and evaluators throughout the loan period.
Failure to comply with these terms could lead to penalties, including blacklisting from future programs.
7. Targeted Crops and Activities
The ABP supports a variety of crops and commodities, including:
- Crops: Rice, maize, wheat, cassava, sorghum, tomato, oil palm, and cotton.
- Livestock: Poultry and aquaculture.
8. How to Apply Online
To apply for the Anchor Borrowers Loan, visit the official CBN website or inquire at the nearest CBN branch.
- Website: www.cbn.gov.ng
Also , CLICK HERE to access all the documents
- Additional resources may be available on the websites of participating state governments and institutions.
9. Benefits of the Program
- Access to affordable credit for farmers.
- Provision of high-quality inputs at no upfront cost.
- Guaranteed market for produce through the Anchor system.
- Support for expanding farming operations and boosting yields.
10. Challenges and Tips for Success
Challenges
- Delays in input distribution.
- Risks of crop failure due to weather or pests.
- Dependence on cooperative leadership.
Tips for Success
- Join a reliable and well-established cooperative.
- Ensure your farmland is viable for the targeted crops.
- Follow the Anchor’s farming guidelines to maximize yield.
- Attend training sessions organized under the program.
By following this comprehensive guide, smallholder farmers can take full advantage of the CBN Anchor Borrowers Loan to enhance productivity, improve livelihoods, and contribute to Nigeria’s agricultural development.
