CBN Intervention Loan: CBN to clampdown on loan defaulters

The Central Bank of Nigeria has disclosed its preparedness to recover loans given to beneficiaries under its Intervention Loan Schemes.

In a report by the News Agency of Nigeria (NAN), Mr Sadeeq Ajayi, in CBN Development Finance Office, at an Agribusiness Innovative Clinic in Ibadan on Wednesday, appealed to the loan beneficiaries to repay their loan so as to enable other applicants benefit from the loan Schemes.

The apex bank decried the misconception by the loan beneficiaries that CBN loans are "National Cake" therefore they have gotten their own share through the loan Schemes.

Mr Ajayi stated that majority of farmers in Oyo State, who benefited from Anchor Borrowers Programme (ABP), have not repaid their loans.

He lamented that the inability of the apex bank to recover the loans from the defaulting farmers had threatened the Scheme, adding that it has prevented other farmers from benefiting from the facility.

“While the Anchor Borrowers’ Programme has recorded some level of success, the failure of farmers to repay the loans has, however, been a major setback.

“Many of the farmers refused to pay back their loans due to misconception that since CBN is the lender, the loan is a ‘national cake’ and they do not have to pay back what they consider theirs as citizens.

“This attitude has made it difficult for other farmers, who also want to access the loan, to benefit from the scheme,” he said.

Mr Ajayi disclosed that the apex bank is engaging with stakeholders, including Traditional Rulers, to partake in the recovery of the loan from the defaulting beneficiaries, so as to allow others benefit from the loan Schemes.

“Of course, we are engaging various stakeholders and we expect the narrative to change very soon so that more people can have access to the fund,” Ajayi said.