The House of Representatives Committee on Nutrition and Food Security has begun a fresh investigation into the insurance framework of the ₦1.12 trillion Anchor Borrowers’ Programme, amid allegations of weak coordination and possible irregularities in the implementation of agricultural intervention funds.
The probe, led by Committee Chairman Chike Okafor, is part of a wider parliamentary inquiry into the management of federal agricultural financing schemes executed through Ministries, Departments and Agencies (MDAs) and participating financial institutions.
At Thursday’s sitting, the Nigerian Agricultural Insurance Corporation (NAIC) revealed that it provided insurance cover for 207,514 farmers under the programme, with a total insured value of about ₦109 billion.
A representative of NAIC’s Managing Director, Dayo Babaronti, told the committee that the Central Bank of Nigeria (CBN) altered the original structure of the scheme, which had assigned NAIC as the sole insurer of participating farmers.
He said the CBN later introduced additional insurers, including Veritas Kapital Insurance and Leadway Assurance, alongside NAIC.
Both firms, however, were absent at the hearing.
Babaronti told lawmakers that NAIC’s coverage accounted for only about 12 per cent of the entire programme’s insurance component.
He further disclosed that under the NIRSAL Plc ₦250 billion agricultural lending facility, NAIC insured only ₦8.25 billion worth of exposure.
“For the ₦250 billion facility designed to support smallholder farmers, NAIC’s cover was limited to ₦8.25 billion,” he said.
He also noted that the corporation provided ₦715 million insurance cover for 80 hectares of ginger farms out of ₦1.6 billion allocated for that segment.
On the Bank of Industry’s agro-processing intervention, Babaronti said NAIC was not assigned beneficiaries to insure, contrary to the original policy framework.
The committee expressed dissatisfaction with the submissions and directed that NAIC be re-invited, citing complaints from farmers and commodity associations over poor insurance coverage and implementation gaps.
Chairman Okafor also faulted the agency for late submission of documents, saying lawmakers did not have sufficient time to properly review them before the session.
He said preliminary findings indicated a disconnect between policy design and execution, with key stakeholders, particularly farmers and commodity groups, allegedly excluded from the planning process.
“The reason we are here is that the programmes did not succeed 100 per cent. If they had succeeded, we would not be here,” he said.
The investigation stems from a House resolution passed on July 1, 2025, mandating committees on nutrition and food security, agricultural production, agricultural institutions, and finance to examine the utilisation of agricultural intervention funds across relevant agencies.
Lawmakers said the probe was necessary given concerns that trillions of naira committed to agricultural schemes had not translated into expected improvements in food production, value chain development, and farmer support.
They also alleged possible misapplication and poor coordination of funds across implementing agencies, including those operating under or outside the supervision of the Federal Ministry of Agriculture and Food Security.
The current phase of the hearing focuses on the insurance component of the Anchor Borrowers’ Programme, which lawmakers say is central to protecting farmers and ensuring accountability in public agricultural spending.
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