Nigeria’s Department of State Services (DSS) has accused staff members of the Central Bank of Nigeria (CBN) of facilitating the misappropriation of public funds through the federal government’s Anchor Borrowers Programme (ABP).
This programme, designed to boost agricultural output by providing financial support to farmers, was established during former President Muhammadu Buhari’s administration in 2015.
However, the DSS claims that corrupt practices undermined the initiative, with CBN officials allegedly overriding guidelines for personal gain.
The allegations emerged during a lawsuit involving Ansar Technology Nigeria Ltd, a participant in the ABP, which is now challenging the DSS’s jurisdiction to investigate its operations.
The company, through its counsel, argues that the DSS’s involvement in debt recovery violates its legal mandate, as the issue stems from a civil matter involving a loan granted by Keystone Bank under the ABP.
Ansar Technology secured a loan of N4.8 billion through Keystone Bank, intending to cultivate 20,000 hectares of rice farmland in Zamfara and Jigawa States.
However, the project was derailed by increasing insecurity in the region, including kidnappings and banditry.
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The plaintiffs argue that these events, which made farming impossible, should have activated insurance coverage provided by Veritas Kapital Assurance Plc.
Yet, disputes arose over which party—Ansar, Keystone Bank, or the insurance provider—should bear the responsibility for repaying the loan.
Despite the ongoing legal dispute, the DSS, under the Directorate of Proceeds of Crime Recovery and Management, has pressed forward with debt recovery efforts, accusing Ansar of working with CBN staff to access funds improperly.
The DSS alleges that Ansar knowingly pursued the loan despite being aware of the insecurity in the farming regions and accuses the company of having no intention of repaying the funds.
As part of a broader investigation, a Joint Committee, including agencies such as the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU), was formed to scrutinize the ABP.
Preliminary findings have reportedly indicted both beneficiaries and CBN staff, accusing them of delaying disbursements, favoring particular beneficiaries, and forcing farmers to insure their farms with specific companies that lacked the capacity to provide adequate coverage.
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The DSS claims that the misuse of funds within the ABP poses a significant threat to Nigeria’s economic security, especially concerning the government’s renewed focus on achieving food security.
The ongoing investigation has led to the dismissal of over 110 CBN employees, particularly those in departments that managed development funds. According to sources, many of these dismissals were directly linked to the mismanagement of the ABP.
This case represents part of a larger probe initiated by the House of Representatives into the ABP, which involves over N1.12 trillion in loans.
The investigation is focused on uncovering systemic corruption and mismanagement within agricultural funding schemes, with a particular emphasis on the role of the CBN and its participating financial institutions.
As the court continues to hear Ansar Technology’s case, the next hearing is scheduled for November 20, 2024.
Meanwhile, the DSS has vowed to continue its investigations into the broader misuse of the ABP, warning that further indictments are likely as more collaborators are uncovered.