How to Successfully Apply for the Anchor Borrowers’ Programme (ABP) in 2025: A Step-by-Step Guide

Last updated on July 29, 2025

Let’s be honest – if you’re a Nigerian farmer, you’ve probably lost count of how many sleepless nights you’ve spent worrying about where your next season’s funding will come from. Sound familiar?

Maybe you’ve even experienced that sinking feeling when you walk into a bank and they ask for collateral worth more than your entire farm (seriously, who has that kind of money lying around?).

Here’s the thing that might surprise you: there’s actually a program designed specifically for farmers like us that doesn’t require you to mortgage your grandmother’s house. I’m talking about the Anchor Borrowers’ Programme (ABP) – and no, this isn’t another “too good to be true” scheme that’ll leave you more frustrated than when you started.

But here’s where it gets interesting (and slightly maddening): despite this CBN farmer loan program existing since 2015, most farmers still don’t know how to navigate the system.

And here’s the kicker – as of June 2025, the House of Representatives is currently probing how N1.12 trillion was disbursed to 4.67 million farmers through this program. That’s not small change we’re talking about here.

That ends today. This guide will walk you through every single step of the Anchor Borrowers’ Programme application process – and I promise to keep the jargon to a minimum because, let’s face it, we have crops to grow, not MBA dissertations to write.

To apply for the ABP in 2025, join a registered farmers’ group, ensure you meet the CBN’s requirements (including 10% equity contribution and validated farmland), and follow the step-by-step process outlined below.

Quick Answers: Anchor Borrowers’ Programme (ABP) 2025

Question	Answer
Who can apply?	Registered Nigerian farmers in groups with BVN and validated farmland.
What’s the minimum equity required?	10% of the loan amount.
How is the loan disbursed?	Primarily as inputs, some cash for labor.
What’s the interest rate?	Single-digit rate prescribed by CBN.
How do I repay?	By produce and/or cash.
Is ABP still running in 2025?	Yes, with stricter oversight.

📄 Download Official Guidelines: CBN Anchor Borrowers’ Programme Guidelines (PDF) – October 2021 Revision

Who Does What in the ABP? Key Stakeholders Explained

Stakeholder	Primary Role	Key Responsibilities
Central Bank of Nigeria (CBN)	Program Owner & Funder	• Provides funds to PFIs<br>• Sets guidelines and interest rates<br>• Monitors program implementation
Anchor Company	Market Guarantor	• Guarantees to buy farmers’ produce<br>• Links farmers to PFIs<br>• Provides technical support
Participating Financial Institution (PFI)	Loan Manager	• Disburses funds to farmers<br>• Must transfer funds within 10 working days<br>• Manages loan accounts and recovery
Farmers’ Association/Cooperative	Group Organizer	• Leadership guarantees full loan repayment<br>• Organizes 5-20 member groups<br>• Coordinates training and monitoring
Smallholder Farmer (You)	Primary Beneficiary	• Provides 10% equity contribution<br>• Follows production guidelines<br>• Delivers harvest to Anchor for repayment

Real Farmer Success Story: From Struggle to Success

Adenike Ogunjenrola – Maize Farmer, Ekiti State

“The anchor borrowers’ initiative is one of the most successful agricultural programmes in the country. The programme has particularly raised the living standards of farmers, while changing the narratives on agricultural investments in Nigeria.”

Her Experience: Adenike received quality inputs including improved seedlings, water pumps, and chemicals through the ABP. The cashless nature of the program eliminated her worries about loan repayment, as her harvest automatically settled the debt.

Result: Significantly improved welfare and expanded farming operations with guaranteed market access.

Source: TBI Africa Agricultural Report, 2019

What is the Anchor Borrowers’ Programme (ABP) and How Does it Work?

Okay, picture this: You know that feeling when you harvest tons of tomatoes but can’t find buyers, so you end up selling at ridiculously low prices to avoid total loss? Frustrating, right? Now imagine having a guaranteed buyer lined up before you even plant your first seed. That’s essentially what the ABP does – it’s like having a farming fairy godmother (except this one actually exists and has real money).

The program was established on November 17, 2015 to facilitate a demand driven ecosystem that creates economic linkages for all nodes of the commodity value chain, from inputs supply, through production, to processing, and finally, to the market. Here’s what blew my mind when I first learned about it: the CBN actually designed this to create a win-win situation for everyone. The big companies get reliable supply, farmers get guaranteed markets, and Nigeria reduces its embarrassing food import bills. Genius, right?

But here’s the reality check: Chike Okafor, Chairman of the House Committee on Nutrition and Food Security, recently revealed that they’re investigating how this massive program actually worked, stating:

“We are probing how the Central Bank of Nigeria (CBN), through the ABP, disbursed about N1.12 trillion to 4.67 million farmers involved in maize, rice or wheat farming through 563 anchors.” Source: Channels Television, February 21, 2024⁴

Despite these investigations, there’s also a strong belief in the program’s potential and past successes:

“The anchor borrower was a successful programme by every consideration. Thousands of farmers benefitted from it and they made a profit. They are just trying to find excuses because there is no reason why they shouldn’t repay the loan by this time. People have a way of assuming whatever comes from the government is for free.” — Joe Aiki, Permanent Secretary of Kebbi State Ministry of Agriculture. Source: Premium Times Nigeria, August 20, 2023¹

Here’s how it really works (without the bureaucratic mumbo-jumbo): Think of it like a three-way marriage between you (the farmer), a big company that needs what you’re growing (the Anchor), and a bank (the PFI). The CBN plays matchmaker by providing the funding at rates that won’t make your head spin – the programme is administered at the prevailing interest rate for intervention funds as prescribed by the CBN.

The beautiful part? Repayment shall be by produce and/or cash as may be prescribed by the CBN. Your harvest literally pays back the loan. No more of that “how will I find money to repay” anxiety that keeps us up at night.

Are You Eligible? Key Requirements for the Anchor Borrowers’ Loan

Before you get too excited (trust me, I’ve been there), let’s make sure you actually qualify. The good news? The requirements for Anchor Borrowers’ loan aren’t designed to exclude you – they’re actually pretty reasonable, though they’ve been tightened up recently.

Here’s what you absolutely must have (based on the latest 2021 revised guidelines):

• Be a member of a farmers’ group, commodity association, or be linked to an Anchor
• Have a valid bank account with BVN
• Not be indebted under any CBN intervention program
• Not be a member of multiple commodity associations
• Have validated farmland
• Provide 10% minimum equity contribution of the loan amount (increased from 5% in the revised guidelines)

Can I be brutally honest? The equity contribution increase initially annoyed me. I mean, going from 5% to 10% might not sound like much, but when you’re talking about substantial loan amounts, that’s real money.

But then it hit me – the CBN introduced additional clauses to reduce loan losses arising from the failure of farmers to repay to a minimal level. Sometimes tighter rules actually protect the program’s sustainability.

Understanding the Key Players: Who You Will Be Working With

Let me break down the cast of characters in this agricultural drama, because understanding who does what will save you from a lot of confusion (and potential heartbreak).

But fair warning – recent investigations have revealed some concerning gaps in accountability and allegations of misuse.

The Anchor (Your New Best Friend… Hopefully)

This is the company or organization that promises to buy your produce at agreed prices. Think of them as your farming safety net. Could be a rice mill, a cassava processing company, or even your state government. The beautiful thing? They’re legally bound to purchase your harvest.

However, concerns have been raised about the transparency and reach of the program:

“of the 24 participating financial institutions who disbursed the money for the APB, they only had evidence of nine institutions.” — Chike Okafor, Chairman of House Committee on Nutrition and Food Security. Source: Channels Television, February 21, 2024⁴

The Participating Financial Institution – PFI (The Money People)

These are your banks – but recent revelations suggest the system isn’t as transparent as we’d hoped, and external factors can severely impact success. While these banks are supposed to move quickly, Charles Bassey, a representative of NIRSAL Microfinance Bank, acknowledged significant challenges:

“Some of the challenges that they have written about include insecurity. A couple of them had pointed to the fact that after they had invested the funds in agricultural business, they were not able to go back to the farms because of banditry and herdsmen.” Source: The Guardian Nigeria, February 21, 2024³

Your Farmers’ Association (Your Agricultural Family)

Here’s something that might surprise you: where the facility was accessed through a Commodity Association, the leadership of the Association shall be responsible for full repayment of facility granted to its members.

Intense, right? This means they’re genuinely invested in your success – their necks are on the line too. However, some have pointed out that the program was not without its flaws:

“The Anchor Borrowers Programme was abused and it did not meet expectations to boost food production. Many people collected the loan to invest in other projects, not farming.” — Yunusa Yabwa, National Secretary of All Farmers Association of Nigeria (AFAN). Source: Premium Times Nigeria, August 20, 2023¹

There are also concerns about the politicization of the program:

“You are well aware that most of the beneficiaries who got the loans were not farmers. The programme was politicised… I have more than 300 hectares of farmland but I didn’t get any support from the government. They don’t like us to say it but that programme was abused seriously.” — Abdullahi Argungu, Farmer and Retired Civil Servant. Source: Premium Times Nigeria, August 20, 2023¹

The Step-by-Step Guide: How to Join the ABP and Apply for Funding

Alright, let’s get to the meat of the matter. How do you actually get your hands on this funding? Fair warning: this isn’t a “submit application today, get money tomorrow” kind of deal. And with ongoing investigations into fund management, you’ll want to be extra careful about following proper procedures.

Step 1: Find Your Farming Tribe

First things first – you need to find and join a legitimate farmers’ group. And I mean legitimate, not your cousin’s “association” that exists only on WhatsApp. The revised ABP guidelines emphasize that farmers are expected to come together under the umbrella of an Anchor.

Here’s a pro tip that could save you months of frustration: given the current scrutiny on the program, call the association’s office directly and verify their current status with CBN. Don’t just assume they’re still actively participating.

Step 2: The Matchmaking Process

Once you’re in a group, your association becomes your matchmaker. The Anchor (large scale processor/producer, Commodity Association or the State Government) shall link the farmers to the Participating Financial Institution (PFI).

The crazy part? With all the investigations happening, make sure your chosen PFI is among the legitimate ones. Remember, only 9 out of 24 institutions had proper evidence of their activities according to recent probes.

Step 3: The Expression of Interest

Here comes the paperwork dance. Your group, through the Anchor, submits an Expression of Interest from anchor to the PFI, followed by an Expression of Interest from PFI to the CBN in favour of Anchor, Commodity Association/Cooperative and State Government indicating the targeted agricultural commodities.

Step 4: System Upload and Verification

The PFI shall upload the farm and farmers details on the CBN system. This is where having accurate information matters – lies have a way of catching up to you in government databases, especially with increased scrutiny.

Step 5: Town Hall Democracy

Get ready for what I like to call “agricultural democracy in action.” The PMT shall organize Town Hall Meetings to agree on the Economics of Production (EoP), off-take price and other relevant issues.

This is where things get real. Show up prepared to negotiate, because these meetings determine your input costs and potential profits.

Step 6: The Tripartite Agreement

After all the meetings and verification, PFI, anchor and farmers representative shall sign tripartite agreements. This is your contract – read every single word.

Step 7: Fund Disbursement

Here’s where expectations might clash with reality: the loan comes mostly as inputs, not cash. But given recent concerns about fund diversion raised in the ongoing probe, this system actually protects you from accusations of misuse.

Step 8: Farming with Heightened Accountability

During the growing season, you’ll get professional support, but be extra diligent about record-keeping. With current investigations ongoing, proper documentation of how you use inputs and funds is more crucial than ever.

Step 9: Harvest and Repayment

Here’s the beautiful part: the Anchor buys your produce at the agreed price and pays directly into your loan account. Repayment shall be by produce and/or cash as may be prescribed by the CBN.

But here’s the critical part – don’t even think about side-selling. The revised guidelines include severe penalties: “Blacklisting of the SHF from all CBN interventions” and “Prosecution of the SHF by anchors/association”.

Your ABP Application Checklist: Required Documents and Information

Given the increased scrutiny and revised guidelines from October 2021, let me save you some back-and-forth trips with this updated checklist:

Your Must-Have Documents:

• ✓ Valid BVN linked to your bank account
• ✓ Bank account with participating financial institution
• ✓ Proof of membership in registered farmers’ group/cooperative
• ✓ Evidence of farm ownership/lease documentation
• ✓ Passport photographs
• ✓ Completed application forms
• ✓ 10% equity contribution (increased from 5%)

Additional Collateral Requirements (Updated 2021):

• ✓ Joint and cross-guarantee of members
• ✓ Personal guarantees of the leadership supported by individual statements of net worth
• ✓ Executed Global Standing Instruction (GSI) mandate
• ✓ Title on farmland

Tips for a Successful Application (And Common Mistakes to Avoid)

Want to know what separates successful applicants from the frustrated ones? With ongoing investigations revealing systemic issues, following proper procedures is more critical than ever. It’s also vital to address the root causes of issues:

“Full-time farmers must be targeted to get the loans and it must be explained to them that it’s a loan, not a national cake. The government should also focus on providing the right infrastructure to reduce production cost, spur investments and address the ease of doing business rather than cash handout for farmers.” — Muhammad Sani, Manager at Albishir Farm in Kano. Source: Premium Times Nigeria, August 20, 2023¹

Your Success Strategy:

• Document everything meticulously – With current probes into fund management, having detailed records protects you.
• Verify your PFI’s legitimacy – Only 9 out of 24 participating institutions had proper evidence according to recent investigations.
• Prepare for security challenges – As Charles Bassey noted, “after they had invested the funds in agricultural business, they were not able to go back to the farms because of banditry and herdsmen.”
• Be patient with the process – Given increased oversight, approval processes may take longer.

Mistakes That Will Definitely Kill Your Application:

• Fund diversion – The revised guidelines include “Blacklisting of the Anchor and promoters from all CBN interventions” and “Immediate foreclosure of pledged collateral”.
• Side-selling your harvest – This now results in “Blacklisting of the SHF from all CBN interventions” and “Prosecution”.
• Input diversion – Also leads to “Blacklisting of the SHF from all CBN interventions”.
• Joining multiple associations – Still violates program guidelines.
• Treating the loan as a grant – As highlighted by Joe Aiki and Muhammad Sani, understanding it’s a repayable loan is crucial.

Current Challenges and What They Mean for You

Let’s address the elephant in the room. As of June 2025, there’s serious scrutiny on how ABP funds have been managed. Charles Bassey from NIRSAL Microfinance Bank acknowledged that:

“insecurity was a major challenge to the successful implementation of the loan scheme” and that farmers faced difficulties because “they were not able to go back to the farms because of banditry and herdsmen. These delayed their seasonal interventions and harvesting.” Source: The Guardian Nigeria, February 21, 2024³

Furthermore, the scale of the program and the issues surrounding repayment are significant:

• Program Scale: 4.67 million farmers benefited across 563 anchors².
• Repayment Rate: According to the CBN, only 52.39% (N503 billion) of the total N1.12 trillion disbursed has been repaid¹.
• Top Beneficiary: Rice Farmers Association of Nigeria (RIFAN) received N283.01 billion, the highest allocation².

This implies that while the program reached many, repayment has been a significant challenge. However, this also means the program is being cleaned up, not shut down. The investigations are actually designed to make the system work better for legitimate farmers like yourself.

Frequently Asked Questions (FAQ) about the ABP

Conclusion: Your Path to Farm Financing in 2025

Look, I won’t sugarcoat it – the ABP is going through some growing pains right now. The ongoing House of Representatives probe into N1.12 trillion in disbursements shows that the system has had issues. But here’s what that really means: they’re working to fix the problems, not abandon the program.

The farmers who will succeed in this cleaned-up version of the ABP aren’t necessarily the smartest or most experienced – they’re the ones who follow procedures religiously, maintain impeccable records, and work with verified, legitimate partners.

So here’s my challenge to you: Don’t let the current investigations scare you away from what could be the best financing opportunity available to Nigerian farmers. Instead, use this information to your advantage. Be the farmer who does everything by the book, who can account for every naira and every grain of fertilizer.

Your next move? Find a legitimate, verified farmers’ cooperative in your area this week. Check their ABP participation status directly with CBN if possible. The farmers who navigate this properly while the system is being reformed will be the ones who benefit most when things stabilize.

Have you been affected by the current ABP challenges? Or maybe you’ve successfully navigated the system recently? Share your experiences below – in times like these, we farmers need to support each other with real, practical advice.

Sources:

1. Premium Times Nigeria – Special Report: How default on loans is killing Nigeria’s Anchor Borrowers’ Programme (August 20, 2023)
2. Nairametrics Analysis – Top 10 beneficiaries of CBN’s N1.1 trillion Anchor Borrowers program (March 22, 2024)
3. The Guardian Nigeria – Reps probe N1.12tr Anchor Borrowers’ fund disbursement (February 21, 2024)
4. Channels Television – Reps Probe ₦1.12trn Anchor Borrowers’ Programme Spending (February 21, 2024)
5. CBN Official ABP Page – Anchor Borrowers’ Programme
6. CBN Official ABP Guidelines (PDF) – October 2021 Revision – https://www.cbn.gov.ng/out/2021/ccd/abp%20guidelines%20october%2013%202021%20-%20final%20(002).pdf
7. ProShare Nigeria – Issues Associated With Anchors Borrowers’ Programme (March 07, 2020)