Federal Lawmakers Launch Probe into Insurance Gaps within Nigeria’s ₦1.12 Trillion Anchor Borrowers’ Scheme

Lawmakers investigate the Nigerian Agricultural Insurance Corporation over ₦1.12 trillion scheme gaps and alleged policy deviations by the CBN.

By: AXL Media

Published: Apr 17, 2026, 8:08 AM EDT

Source: Information for this report was sourced from Business Hallmark

Legislative Scrutiny of Agricultural Interventions

The House of Representatives Committee on Nutrition and Food Security has initiated a formal inquiry into the insurance structure of the ₦1.12 trillion Anchor Borrowers’ Programme. This probe, led by Committee Chairman Chike Okafor, focuses on allegations of weak coordination and mismanagement within federally backed agricultural funding initiatives. The investigation is part of a broader legislative review intended to evaluate how various ministries, departments, and financial institutions implemented these schemes. Lawmakers expressed concern that despite the significant capital committed to food security, the results in terms of production and farmer support have not met national expectations.

Central Bank Policy Deviations Alleged

During a recent hearing on April 16, 2026, the Nigerian Agricultural Insurance Corporation (NAIC) provided testimony regarding its limited role in the overall program. A representative for the NAIC Managing Director, Dayo Babaronti, informed the committee that the Central Bank of Nigeria (CBN) deviated from the program’s original design. According to the NAIC, the initial framework designated the corporation as the sole insurer for participating farmers. However, the CBN reportedly bypassed this arrangement by engaging additional private providers, including Veritas Kapital Insurance and Leadway Insurance, which diluted the specialized oversight intended for the scheme.

Discrepancies in Insurance Coverage

The data presented to the committee revealed a significant gap between the program's total value and its insured exposure. NAIC disclosed that it provided coverage for only 207,514 farmers, representing a total value of ₦109 billion. This figure accounts for approximately 12 percent of the overall program, raising questions about the protection of the remaining billions in disbursed funds. Furthermore, under the ₦250 billion NIRSAL facility, NAIC covered only ₦8.25 billion of the total risk. These discrepancies have led lawmakers to question the effectiveness of the risk management strategies employed by the participating financial institutions.