In November 2015, Nigeria launched what would become one of its most transformative yet controversial agricultural initiatives – the Anchor Borrowers Programme (ABP).
For seven years, this flagship policy of the Buhari administration revolutionized Nigeria’s agricultural landscape, turning the country from a major food importer into a near self-sufficient producer in key crops.
Yet by 2022, widespread loan defaults forced its suspension, leaving millions of smallholder farmers without support and the nation’s food security hanging in the balance.
Today, as food prices soar and agricultural productivity declines, farmers across Nigeria are calling for something they never thought they’d want back, a redesigned and relaunched ABP 2.0.
ABP’s Remarkable Achievements (2015-2022)
The Anchor Borrowers Programme was conceived with an ambitious vision – to create economic linkages between smallholder farmers and processors while ensuring food price stability.
Its four key objectives were to increase banks’ financing for agriculture, reduce food import bills, create a new generation of commercial farmers, and deepen financial inclusion in rural communities.
The results were nothing short of extraordinary.
Under the ABP, Nigeria witnessed unprecedented agricultural transformation. Rice production skyrocketed from approximately 2 million tons in 2015 to over 7.5 million tons annually by the program’s peak.
The country’s average yield per hectare for maize jumped from 1.8 tons in the pre-ABP era to 4-5 tons, while rice yields increased to 3-4 tons per hectare.
Perhaps most remarkably, wheat production – long considered unsuitable for Nigeria’s climate – expanded from a mere 63,000 tons in 2015 (representing just 1% of national demand) to over 400,000 tons by 2022.
The program’s economic achievements were equally impressive. Nigeria’s rice import bill plummeted from a staggering $1.05 billion before November 2015 to just $18.5 million annually by 2022 – a reduction of over 98%.
The average capacity utilization of domestic integrated rice mills jumped from 30% to 90%, breathing new life into the country’s processing sector.
The ABP supported over 4.8 million smallholder farmers across 23 agricultural commodities, including maize, rice, oil palm, cocoa, cotton, cassava, tomato, and livestock.
This massive reach created an estimated 12.3 million direct and indirect jobs across different value chains and food belts throughout the country.
The COVID-19 Test
The program’s true value became evident during the COVID-19 pandemic. While global supply chains collapsed and food security became a worldwide concern, Nigeria’s smallholder farmers, supported by the ABP infrastructure, sustained local markets and fed the nation.
Rice paddy prices remained stable below ₦20,000 per 100kg throughout the ABP period, demonstrating the program’s success in maintaining food price stability.
Why ABP Collapsed
Despite its remarkable achievements, the ABP faced a perfect storm of challenges that ultimately led to its suspension in 2022. The primary culprit was widespread loan defaults by beneficiaries, but the root causes ran much deeper.
Underground investigations by Dolapo Bright, Senior Special Assistant to the President (Agro-Allied Value Chain), revealed that the loan defaults were largely orchestrated by corrupt officials. According to him, these officials employed various schemes to enrich themselves:
- In connivance with cronies in cooperative societies and farmers’ associations, officials disbursed loans to tens of thousands of non-existent farmers.
- Genuine farmers who accessed funds were often swindled through short payments. For instance, farmers might receive ₦150,000 but were forced to sign documentation claiming they received ₦250,000 for rice production per hectare.
- Billions of naira in loans were given to large corporate entities with no connection to agriculture or agro-processing.
What happened next?
Legitimate farmers faced numerous obstacles that affected their ability to repay loans:
- Insecurity in farming communities disrupted production cycles
- Flooding, crop failure, and adverse climate change effects
- Unscrupulous suppliers sold fake fertilizers, agro-chemicals, and hybrid seeds to farmers
- Poor monitoring systems made it difficult to track loan utilization and ensure accountability
The Aftermath: Tinubu declares a state of emergency on agriculture
When President Bola Tinubu assumed office and declared a state of emergency on agriculture and food security, farmers expected robust new strategies to support smallholder agriculture.
Instead, they witnessed the controversial approval of zero-duty grain and pulse importation – a policy many viewed as contradictory to food security objectives.
The suspension of the ABP with no replacement has had devastating consequences. Rice paddy prices, which never crossed ₦20,000 per 100kg during the ABP era, reached ₦25,000 in 2023 and nearly ₦100,000 per 100kg by the end of 2024.
Farmers can no longer afford high input prices, particularly fertilizers, leading to widespread anxiety and uncertainty about their agricultural future.
During recent engagements with farmers in Kano State, agricultural productivity decline was directly attributed to the ABP’s suspension. Farmers expressed frustration over skyrocketing input prices and the high cost of crop production, coupled with the government’s apparent lack of support for smallholder agriculture.
The Call for ABP 2.0: Lessons Learned
Despite the program’s controversial end, an overwhelming majority of farmers who participated in the ABP still regard it as “the boldest and best government agriculture support initiative ever in the recent history of the country.”
Their calls for ABP 2.0 are not rooted in the recognition of what worked and what needs fixing.
What Farmers Want
Farmers across the country have consistently advocated for a redesign and thorough examination of the program’s successes and failures, robust systems to track loan utilization and prevent fraud, clear processes that reduce opportunities for corruption, programs to help farmers understand loan obligations and best practices, and support systems to help farmers cope with climate challenges.
Policy Recommendations
The lessons from ABP’s rise and fall offer valuable insights for designing ABP 2.0:
- Establish independent oversight bodies with real-time monitoring capabilities and severe penalties for fraudulent officials.
- Implement a trackable and efficient loan disbursement system
- Provide different levels of support based on farmer experience and capacity, with intensive mentorship for new participants.
- Establish certified input supplier networks with regular quality testing and farmer feedback.
- Integrate crop insurance and climate-resilient farming practices into the program structure.
The revival of the Anchor Borrowers Programme, properly designed and implemented, could once again transform Nigeria’s agricultural landscape.
But success will require learning from past mistakes, embracing transparency, and putting smallholder farmers at the center of policy design. The question remains: Is Nigeria ready for ABP 2.0?