The Anchor Borrowers’ Programme (ABP) is one of the most effective interventions in agriculture, which was formulated in the Central Bank of Nigeria (CBN). The program was introduced in November of 2015 to provide low-interest loans for smallholder farmers while also linking the farmers to trusted agro-processors, also known as “anchors.”
The aim of the ABP is to increase locally grown food production and lessen dependence on imports and enhance accessibility to loans for farmers on small scales in Nigeria. It has supported millions of farmers in the cultivation of important crops like wheat, maize, rice, cotton, sorghum, and maize.
This guide will explain what the ABP is, what it is, and how it work , as well as who is eligible to apply. the required documents, coverage for funding, and important timelines.
What is the Anchor Borrowers’ Programme (ABP)
The Anchor Borrowers’ Program (ABP) is an agriculture-related financing program run by the Central Bank of Nigeria (CBN) in collaboration with the NIRSAL Microfinance Bank (NMFB) and participating financial institutions.
The program links smaller-scale farmers (borrowers) and large-scale agroprocessors or commodities purchasers (anchors) that offer training, input, and secure markets for their products.
Under the ABP, farmers can receive funds as well as input packages (such as fertilizers, seeds, and agrochemicals) through authorized channels. The repayment is due after harvest, usually in the form of products that are delivered to the anchor business.
The program encourages sustainable agriculture, increases the security of food, and is a part of the larger goal of Nigeria’s diversification of its economy.
Information could differ depending on the program’s phase. Verify details via the official CBN as well as NMFB portals prior to applying.
Funding & Coverage of ABP
The Anchor Borrowers’ Programme provides targeted production and credit for small-scale farmers.
The key features are:
- Credit Amount Variable based on crop size, type, and cost of production (averaging N250,000 to N500,000 per hectare)
- Interest Rate: 9% per annum (single-digit)
- Repayment Time: Typically tied to the cycle of crop production (6-12 months)
- Type of Financing: Input financing (cash or other materials such as fertilizer, seeds, or equipment)
- loan channel: By NIRSAL Microfinance Bank or other financial institutions
- Collateral guarantees or contracts for production by groups, instead of collateral that is traditional
- Goal Beneficiaries: Smallholder farmers with one to five hectares of land
- Major Anchors: Rice mills, cotton ginneries, flour mills, cassava processors, poultry companies, etc.
Key Crops and Commodities Covered
Crop/Commodity Examples of States Supported: Rice Kebbi, Kano, Ebonyi, Nasarawa, Benue Maize Kaduna, Niger, Ogun Cassava Kogi, Cross River, Ondo Cotton Katsina, Zamfara, Sokoto, Groundnut, Jigawa, Bauchi. Sorghum, Kano, Katsina Poultry, Fishery & Dairy Coverage across the Nation
The ABP encourages dry- and wet-season farming and encourages large-scale participation via farmer associations and cooperatives.
Eligibility for Anchor Borrowers’ Program
The applicant must meet a set of criteria to be eligible in the ABP:
- You must have been a Nigerian farmer or a member of a registered farmer association or cooperative.
- It must have verifiable agricultural land that is suitable for the crop..
- You must have the bank verification number (BVN).
- You must be able to collaborate in conjunction with an anchoring company or an aggregator.
- You must submit a farming business plan for the farm or a proposal.
- The borrower must be willing to pay back the loan upon the harvest (cash or product).
- Do not have any unpaid balance CBN loan facility
The priority is granted to those who are engaged in the production of staple crops and members of organized cooperatives.
How to Apply for the Anchor Borrowers’ Program (Step-by-Step)
- Join a registered cooperative or farmers’ group.
The ABP is primarily run by organized groups, not individuals. Join a cooperative that is recognized by your state’s agricultural development department. - Find the value of the commodity or anchor chain.
Choose one of the commodities or crops that is covered under ABP and connected to an anchor already in place (e.g., cotton ginneries, rice millers, and so on). - Sign up with NIRSAL Microfinance Bank (NMFB).
Visit any NMFB branch or its official website to indicate your interest in joining and become part of a cooperating cooperative. - Submit Business Plan and Application
Fill out this ABP application form. Attach your farm’s business plans, a BVN or ID card, and evidence of ownership of the land or lease. - screening and verification
NMFB as well as CBN representatives will confirm all your farm documents and address and details of your cooperative. - Acceptance and disbursement of input
After approval, the funds and input package (including seeds, fertilizers, agrochemicals, etc.) are distributed before the planting season begins. - Monitoring and support
CBN official anchors, CBN officials, and extension workers track the progress of the production and offer technical assistance throughout the entire production process. - Repayment Following the Harvest
The farmers pay back their loans using the profits from sales to the anchor business.
Required Documents for ABP Application
- Completed ABP application form
- A valid means of identification (National ID card, National ID, or driver’s license)
- Bank Verification Number (BVN)
- Passport photographs
- Evidence of ownership of the farmland or lease
- Cooperative membership certificate
- Production plan or business proposal
- Tax Identification Number (TIN) (for larger farmer groups)
Timelines
- Application Time: Before each planting season (varies depending on the crop and region)
- Screening & Approval: 2-4 weeks after submission
- Input Disbursement prior to the beginning of the farming season
- Harvest and Payment: Within 6-12 months, dependent on the cycle of the crop
- Tracking: Throughout the production and the repayment phases
Common Challenges or Warnings
- Beware of the unauthorized agents that claim to provide ABP loans at a cost. Registration is free via the official CBN as well as NMFB channels.
- Be sure to verify the accuracy of your cooperative records and BVN information—any discrepancies can delay the disbursement.
- Inability to pay back or improper management of funds can result in exclusion from future CBN programs.
- Apply only through verified farmers’ associations or aggregators.
FAQs on the Anchor Borrowers’ Programme (ABP)
1. What’s the ABP? What is it? It’s a CBN initiative that connects smallholder farmers to larger agro-processors (anchors) with low-interest financing with guaranteed prices.
2. Who is eligible to apply? Nigerian smallholder farmers or members of registered cooperatives involved in livestock or crop production.
3. How much will I receive for the loan amount? It depends on your crop’s type size, the land size, as well as input costs per hectare.
4. What is the rate of interest? 9.9% per year.
5. Are collateral requirements necessary? Traditional collateral isn’t required; group guarantees or the production of produce are used to provide collateral for repayment.
6. What are the main crops supported by the government? The government supports crops such as maize, rice, cotton, cassava, sorghum, groundnut, and poultry. and many more.
7. How can I apply? NIRSAL Microfinance Bank or your local cooperative that is linked with an anchor.
8. Is it a grant or loan? it is a loans with favorable conditions but not the grant?
9. what If I fail to pay? Your cooperative’s ability to access future funding will be block as well as your credit report.
10. How can I determine whether my cooperative is eligible? check with state’s agricultural development agency or the NMFB office?
11. can Individuals apply directly? Typically, applications are processed through cooperatives. However, certain farmers might be able to qualify by submitting authentic anchors.
12. What is the next window to apply? It is typically announced prior to the beginning of each planting year with CBN as well as NMFB.
Conclusion
The Anchor Borrowers’ Program (ABP) remains an important platform for empowering Nigerian farmers and improving food security. By connecting farmers to reliable anchors, the program provides access to credit, inputs, and market access, as well as promoting the discipline of repayment and sustainable agriculture.
Farmers who are interested should apply via accredited cooperatives or anchors prior to the beginning of the next growing season in order to take advantage of this chance.
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