By Gift Chapi Odekina, Abuja The House of Representatives Committee on Nutrition and Food Security has uncovered that just a fraction of the N1.12 trillion Anchor Borrowers Programme was insured, raising fresh concerns over accountability and risk management in the controversial scheme.
At an investigative hearing on Thursday, the committee chaired by Hon. Chike Okafor shifted focus to the role of insurance in safeguarding the massive agricultural intervention fund, as part of an ongoing probe into alleged diversion and mismanagement.
A representative of the Nigerian Agricultural Insurance Corporation (NAIC), Dayo Babaronti, told lawmakers that the agency provided insurance cover for only 207,514 farmers, representing about 12 per cent of the entire scheme, with coverage valued at N109 billion.
The disclosure has intensified scrutiny of the programme’s implementation, particularly as the Central Bank of Nigeria reportedly deviated from the original framework that designated NAIC as the sole insurer.
Instead, two additional firms Leadway Insurance and Veritas Kapital Insurance were engaged, though both companies were absent at the hearing.
Further revelations showed gaps across other agricultural financing initiatives linked to the programme. Under the NIRSAL Plc facility valued at N250 billion, NAIC’s coverage stood at just over N8.25 billion.
Similarly, only N715 million worth of insurance was provided for 80 hectares of ginger farms, out of a N1.6 billion allocation.
In another instance, NAIC disclosed it was completely excluded from the Bank of Industry’s Agro and Food Processor Scheme, despite provisions in the Anchor Borrowers framework.
Reacting, the committee chairman signalled tougher legislative action ahead, announcing that NAIC would be recalled for further questioning following multiple complaints from farmers and commodity associations over inadequate coverage.
Okafor also faulted the late submission of documents by NAIC, which he said limited the committee’s ability to fully interrogate the agency’s claims.
He stressed that the investigation aims to unravel systemic failures that undermined the effectiveness of government-backed agricultural interventions, noting that early findings point to the exclusion of key stakeholders especially farmers in the design and execution of the programme.
“The fact that we are here shows the programme did not achieve full success,” he said. The probe is part of a broader mandate issued by the House in July 2025, directing multiple committees to investigate alleged misuse of public funds across federal agricultural schemes and interventions.
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