Home News Those Behind Misused N1.2 trillion Agric Funds will be exposed- Rep. Okafor

Those Behind Misused N1.2 trillion Agric Funds will be exposed- Rep. Okafor

by Our Reporter

With a deep understanding of the challenges facing Nigeria’s agricultural sector and its impact on the populace, Hon. Chike Okafor is spearheading a crucial investigation into the utilisation of substantial government funds, totalling N1.2 trillion allocated to enhance food security.

In this Exclusive chat with Lizzy Chirkpi of PointBlank News, Hon Okafor, who chairs the House Committee on Nutrition and Food Security, vows to bring to book those behind the misappropriation of the funds from 2015 to date.

 

 

Honourable Chairman, please tell us your role in the 10th House of Representatives

 

 

My name is Chike Okafor, and I have the privilege of representing the good people of Ehime Mbano/Ihitte Uboma/Obowo Federal Constituency of Imo State in the House of Representatives. I also serve as the Chairman of the House Committee on Nutrition and Food Security.

 

Your Committee recently convened a public hearing to examine the alleged misuse of N1.2 trillion allocated to various agricultural agencies to bolster national food security. How do you anticipate this inquiry will yield tangible positive outcomes?

 

We are undertaking this critical assignment on behalf of the 10th House of Representatives. This investigation specifically targets the alleged misuse of government interventions in agricultural funding by departments, agencies, schemes, and programmes of the Federal Government, particularly those operating outside the direct oversight of the Federal Ministry of Agriculture itself.

 

This initiative stems from a resolution passed by the House, which was subsequently referred to my committee given the direct link to food security.

We have commenced the investigative hearing, and we extended invitations to a number of key agencies – around 11 or 12 – although six were present. It’s important to remember that the House is currently on recess, which likely influenced the attendance, with some agencies perhaps assuming the hearing would be postponed.

 

However, recognising the urgency and significance of this investigation, we proceeded as planned and will continue with subsequent hearings immediately upon our resumption.

 

 

We are executing our statutory mandate as outlined in Sections 81 and 82 of the 1999 Constitution, as amended. This empowers the National Assembly not only to approve budgetary allocations but also to exercise oversight, enabling us to probe, inquire, and ascertain how these public resources are being utilised.

 

Specifically, this investigation focuses on disbursements made between 2017 and the present, as available records indicate substantial financial allocations during this period. For instance, the Central Bank of Nigeria (CBN), through the Anchor Borrowers’ Programme, reportedly disbursed approximately N1.12 trillion to over 4 million farmers involved in maize, rice, and wheat farming through 563 anchors.

 

Additionally, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has disbursed around N215.06 billion with the stated aim of facilitating agriculture and agrobusiness.

 

The Bank of Industry also disbursed about N3 billion to approximately 22,120 smallholder farmers through their Agriculture Value Chain Financing Programme and further funded about 49 agro and food processing businesses with roughly N59.4 billion in loans.

 

In 2023, the Federal Government also unveiled a N5 billion loan facility for livestock farmers through the Bank of Agriculture. Furthermore, the National Agricultural Development Fund inaugurated a N1.6 billion recovery fund for the Ginger Blight Epidemic Central Task Force in March 2024.

 

These are significant sums of money. However, the critical question remains: if these funds were indeed channelled effectively into the right agricultural programmes, why is Nigeria currently facing such a dire need and stress? Why are we grappling with food scarcity and a declared emergency? It’s a severe emergency.

Consequently, allegations have surfaced, with some suggesting that these funds were disbursed to fictitious farmers or questioning the identity and operations of the Anchor Borrowers. We are committed to avoiding any preemptive conclusions or engaging in a witch hunt. Our objective is to thoroughly investigate, to get to the root of the matter, and to understand if and where things went wrong. As I stated in my address during the hearing, our primary interest is to ascertain where we “lost it” despite the massive financial interventions.

 

Your committee has a strong focus on food security. Moving forward, what role will you play in ensuring that the disbursement of funds is done appropriately? Will your Committee be involved in the disbursement process itself?

 

We cannot be directly involved in the disbursement of funds. As the legislature, we operate under a clear separation of powers from the executive. Our role is to provide oversight, not to execute. We will not encroach upon the duties of the executive branch.

Our responsibility is to ensure that the executive carries out its functions according to established rules, as appropriated by the National Assembly, and in alignment with the objectives of the current administration. We are here to verify that what was expected to be done has indeed been done. We cannot participate in the disbursement process; that is not our constitutional role. However, we have the authority to scrutinise disbursements after they have occurred.

 

You mentioned the period from 2017 to date. The National Assembly has been in existence throughout this time, possessing the power of oversight. In your opinion, what fundamentally went wrong that necessitates this probe now?

 

As far as the National Assembly is concerned, we don’t have any inherent problems or challenges regarding our oversight responsibilities. Our function is distinct from that of the executive. My current involvement stems from my position as Chairman of the Committee on Nutrition and Food Security, to which this motion was referred.

My primary responsibility as Chairman is to diligently execute the assignment given to us by the House of Representatives. I am not focused on assigning blame for past actions or inactions. Our present reality is a significant food crisis that has been worsening over the past two to three years, reaching a peak around December 2024.

It’s also crucial to acknowledge external factors that have exacerbated the situation. Natural disasters, such as the floods in Borno State, and the pervasive insecurity, including the activities of herdsmen and other criminal elements that restrict farmers’ access to their land, have played a role. We will also consider these extraneous factors in our investigation.

For instance, if we engage with an agency like NIRSAL and they provide a list of farmers in the North West who received loans in recent years, and upon inviting some of these farmers, we learn that they suffered crop losses or were unable to farm due to security concerns, we can understand that these are natural or unavoidable causes beyond the direct control of agricultural institutions.

However, I must state that we have received credible information indicating that some of these funds were directly lent to individuals who had no intention of engaging in farming. We possess some of this information, but we will not present it publicly until we have engaged with the relevant Ministries, Departments, and Agencies (MDAs) and institutions and received their responses.

During my opening remarks at the hearing, I emphasised that we would carefully consider their submissions, expect full cooperation and honest disclosures, demand actionable recommendations, and stress that accountability is not optional but a necessity. The Nigerian people have a right to know how their resources are being utilised, and my Committee is committed to ensuring that every kobo allocated to agriculture serves its intended purpose throughout the entire value chain, from the farm to the supply networks.

Where we identify natural or unavoidable causes for failures, we will acknowledge them. Many of us are also farmers and have experience with borrowing for agricultural endeavours, so we understand these realities. However, in cases of direct lending to individuals who knew from the outset that they would not invest the funds in farming or agrobusiness, or who simply intended to abscond with the money, we will not tolerate it. Not under my watch, particularly as I am leading this investigation. I assure you, our inquiry will be thorough and fearless.

So, to directly answer your question, while we acknowledge the past, our primary focus is on the present crisis and how to rectify the situation moving forward. We must learn from any shortcomings of the past to ensure that future interventions are effective and truly benefit the Nigerian people. We cannot continue to invest without seeing tangible results on the ground.

 

What specific steps will your Committee take to bridge the gap in food security, particularly regarding the various agencies responsible for adequate food supply?

 

We will intensify our oversight responsibilities. It’s important to clarify that the role and scope of the parliament are often misunderstood. We cannot step into the operational functions of the ministries; there is a clear separation of powers among the three arms of government.

However, the Constitution empowers the legislature with the crucial function of oversight. This is the primary tool at our disposal. This investigative hearing is a direct activation of that oversight power, allowing the National Assembly, specifically the committee I chair, to question the executive on their performance over the past few years: how and why were funds spent, especially when the stated goal of funding agribusinesses has not translated into food security for Nigerians.

Moving forward, our immediate action is to raise awareness within the executive, the Nigerian public, and the media that we are actively exercising our constitutional rights. We have already begun this process. We will follow this by asking the necessary questions and probing where necessary.

As I already stated, upon our resumption, we will formally write to all the relevant agencies. Should any of them fail to appear, I will not hesitate to issue bench warrants to compel their attendance.

 

Disrespecting the National Assembly is unacceptable; they are obligated to appear. This is the extent of our direct authority. We cannot overstep our constitutional boundaries by directly intervening in the operations of the Ministry of Agriculture, the Bank of Agriculture, or NIRSAL. They must execute their mandates. Our role, empowered by Sections 81 and 82 of the Constitution, is to conduct oversight after funds have been appropriated. This is the extent of our legislative power in this regard.

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