By Simeon Shodimu
The House of Representatives Nigeria Committee on Nutrition and Food Security has launched an investigation into the insurance component of the ₦1.12 trillion Anchor Borrowers’ Programme, as part of a broader inquiry into alleged mismanagement and diversion of agricultural intervention funds. According to Punchonline of April 16, 2026
The investigative hearing, chaired by Chike Okafor, according to the report is examining the roles played by Ministries, Departments and Agencies (MDAs), as well as participating financial institutions, in implementing government-backed agricultural schemes.
At the hearing, the Nigerian Agricultural Insurance Corporation disclosed that it provided insurance cover to only 207,514 farmers, representing ₦109 billion under the programme—a fraction of the total intervention.
Representing the Managing Director of NAIC, Dayo Babaronti told lawmakers that the Central Bank of Nigeria departed from the programme’s original framework, which had designated NAIC as the sole insurer. Instead, the apex bank engaged additional firms, including Veritas Kapital Insurance and Leadway Insurance.
However, both firms were absent from the hearing, raising further concerns among committee members.
Babaronti revealed that NAIC’s overall insurance coverage under the scheme stood at just 12 per cent, underscoring significant protection gaps for farmers. He further disclosed that under the ₦250 billion financing facility managed by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending Plc, NAIC insured only ₦8.25 billion.
In another instance, only ₦715 million worth of insurance cover was provided for 80 hectares of ginger farms, out of a ₦1.6 billion funding allocation—highlighting disparities between funding and risk protection.
The agency also noted that it was excluded from key programmes such as the Bank of Industry’s Agro and Food Processor Scheme, contrary to the original policy framework of the Anchor Borrowers’ Programme.
Following the submission, Okafor said the committee would recall NAIC for further questioning, citing widespread complaints from farmers and commodity groups over inadequate insurance coverage. He also criticised the agency for late submission of documents, which limited lawmakers’ ability to properly review its performance.
The committee has resolved to thoroughly investigate allegations that agricultural intervention funds were misapplied, poorly coordinated, or diverted through MDAs and participating institutions operating outside the supervision of the Federal Ministry of Agriculture and Food Security.
Lawmakers say the probe will determine the extent of fund disbursement, utilisation, insurance coverage, and the overall impact of the programme, with a view to closing gaps, strengthening accountability, and recommending reforms to Nigeria’s agricultural financing framework.
