Recent Government Policies
Agriculture: Anchor Borrower’s Programme
This programme was launched in November 2015 to create a link between anchor companies involved in processing key agricultural commodities and small holder farmers who produce these commodities. The programme aims to provide small holder farmers with farm inputs in order to boost production of those commodities, stabilize inputs supply to agro processors, and address the country’s negative balance on food payments.
According to the Acting Director, Corporate Communications Department, CBN, so far (as at November 2017) N45.4bn has been released through 13 participating financial institutions in respect of over 218,000 farmers cultivating nine commodities across 30 states. He also stated that since the introduction of the ABP, local rice production has increased by 2 million metric tonnes, bringing the total output to 4 million metric tonnes.
Governance: Expansion of Treasury Single Account (TSA) coverage
In August 2015, a directive issued by the Presidency instructed all Ministries, Departments and Agencies (MDAs) to close their accounts with Deposit Money Banks (DMBs) and transfer their balances to the Central Bank of Nigeria on or before 15th September 2015. The TSA allows the managers of the Government’s finances to monitor and at any time have an overall view of the cash flow of the entire Government. It has the ultimate aim of increasing transparency in the financial activates of MDA’s. The finance minister stated that the policy will equally allow the Government to reduce its borrowing costs since most loans will now be directly from the Central bank and not from Deposit Money Banks.
Agriculture: Agriculture Promotion Policy (2016-2020)
This new policy which will run for a span of 5 years, replaces the Agricultural Transformation Agenda (ATA) of the preceding government. The policy aims to build on the achievements of the ATA, while tackling two key gaps in Nigeria’s agriculture; the first being the inability of the agriculture sector to meet domestic food requirements, and the second, the inability to export produce at quality levels to earn foreign exchange.This will be achieved through the three main pillars and 17 priorityareas contained in the roadmap which focus on productivity enhancements, private sector investments, and addressing institutional constraint.
Anchor Borrower’s Programme Guidelines, Development Finance Department, Central bank of Nigeria, December 2016
Ifeanyi Onubah, ‘CBN expands Anchor Borrowers’ Programme, releases N45bn’, The Punch Newspaper, November 9th 2017, http://punchng.com/cbn-expands-anchor-borrowers-programme-releases-n45bn/
Ndubuisi Francis, ‘CBN Releases N44bn for Anchor Borrowers’ Programme’, Thisday Newspaper, October 5th 2017, https://www.thisdaylive.com/index.php/2017/10/05/cbn-releases-n44bn-for-anchor-borrowers-programme/
Editorial board, ‘the new agriculture roadmap policy’, The Guardian, 16th August 2016
Image Source: Economic Confidential