The Central Bank of Nigeria has warned that farmers who default repayment of the loans collected under its Anchors Borrowers Programme will be barred from accessing a new facility and have their pledged collateral foreclosed.
The Development Finance Department of the CBN said this in its revised ABP Guidelines released on Friday.
It said, “Failure to repay facility as and when due would attract suspension from accessing new facility until the existing facility is recovered; call-in the personal guarantee of the leadership; and foreclose on all pledged collateral.”
The CBN vowed to get tough on beneficiaries guilty of diverting the funds.
According to the apex bank, punishment for such diversion include blacklisting of the association and its leadership from all CBN interventions; prosecution of the leadership by the participating financial institutions; repayment of the loan by the guarantors/cooperatives/commodity and associations.
It said the anchor would cease to participate in the ABP and any other CBN interventions for failure to offtake quality produce from farmers.
