How UBA Diverted N1.452bn Farmers’ Fund; Over 5,000 Farmers Not Paid 8 Months After CBN Released Money To UBA

How UBA Diverted N1.452bn Farmers’ Fund; Over 5,000 Farmers Not Paid 8 Months After CBN Released Money To UBA

How UBA Diverted N1.452bn Farmers’ Fund; Over 5,000 Farmers Not Paid 8 Months After CBN Released Money To UBA

The United Bank for Africa (UBA) Plc is currently in the eye of the storm: the bank is currently enmeshed in a N1.452 billion meant for disbursement to input suppliers in the Central Bank of Nigeria’s (CBN’s) Anchor Borrowers Programme in Sokoto State.

According to documents in possession of, UBA Plc received N1,452,841,483.80k from the CBN on 15 November, 2017 for disbursement to farmers who have executed contracts in the programme. The farmers operated under aegis of the Agricultural Input Suppliers Forum On Central Bank of Nigeria (CBN), Anchor Borrowers Programme, Sokoto State. confirmed that UBA applied for the fund from the Apex Bank and after fulfilling all the conditions put forward by CBN, the Apex Bank released the fund to the bank on 15 November, 2017 for onward disbursement to the farmers. But quite inexplicably and curiously, UBA have deliberately refused to disbursement the fund since November 2017.

The effect of UBA’s deliberate refusal, can confirm, has left heavy negative effects on the contractors. investigation revealed that four of the contractors are about to lose their properties used as collateral to borrow money to find the projects. also learnt that timely intervention of relatives prevented one of the contractors from committing suicide recently as his creditors are tightening the noose on him to pay his debts.

The problems, can confirmed, are not limited to Sokoto State but also happening in other states of the federation.

Documents in possession of, indicated that several efforts by the contractors to get the bank released the funds have met brickwall.

According to investigations carried out by this medium, several companies were engaged in the first quarter of 2017 by the Federal Government as Agricultural Input Suppliers through the Project Management Teams of CBN Anchor Borrowers Programme in various states of the federation, Sokoto State inclusive. The contractors fully executed the projects.

But to their disappointment, UBA refused to pay the contractors, particularly those from Sokoto State, even after collecting the fund from the Federal Government through the CBN.

Three commercial banks, according to investigations by, were selected by the FG to warehouse the fund for the payment of the anchor borrowers after fulfilling the conditions laid down by the Apex Bank. The three banks are: UBA Plc, Access Bank Plc and Unity Bank Plc.

Among the three, can confirmed that only Unity Bank Plc disbursed the fund domiciled with to companies under its jurisdiction. Access Bank on its part developed cold feet after the commencement of the programme. Curiously, UBA collected the money from FG but has not paid the contractors and subsequently the farmers since November 2017.’s investigations revealed that over 5,000 farmers are involved and the total money involved is N1,452,841,483.80k. In Sokoto State, the following companies have not been paid: (1) Kafin Kafi LTD (2) Dan Dutse Integrated Ltd (3) SBFS Nigeria Ltd (4) Green Agriculture West Africa Ltd (5) Ogush Trade Nigeria Ltd (6) Alyusma Ventures and Investment (7) Wacot Ltd (8) Crystilised Nigeria Limited (9) Saro Agro Science Ltd (10) Motube Hi-tech Systems Ltd (11) Herrmann Integral Service (12) MB Maccido Investment Ltd (13) Haurede Aljazia Multiservices Ltd (14) Masaura Multiservices Company Ltd and (15) Al-Mufaim Nigeria Ltd.
The distressed contractors, particularly those from Sokoto State, have sent petition letters to the CBN and the Federal Ministry of Finance calling for not only their payment but also an investigation into the activities of UBA on the non-disbursement of the fund.

The first letter to CBN and the Finance Ministry was dated 15 March, 2018 and signed by all the aforementioned contractors from Sokoto State. Another letter was dated 24 April, 2018 and signed by the Sokoto State CBN Anchor Borrowers Programme Forum Secretary, Paschal Ignatius Idogbe Esq.

The various correspondences have yielded result as the CBN has waded into the matter.

In a letter dated 2 August, 2018 and signed by Dr M A Olaitan, Director, Development Finance Department of the Apex Bank, the CBN confirmed that over N1 billion was deposited with UBA for onward disbursement to 5,684 small holder farmers on 15 November, 2017.

The CBN also confirmed that UBA has not disbursed the fund eight months after it received the money from the Apex Bank. The CBN thus urged UBA to ensure that the payment is made. The CBN letter was addressed to the Managing Director of UBA.

The letter from CBN has spurred the distressed contractors into more action as they have given UBA a 14-day ultimatum or face legal action.

A letter to that effect signed Paschal Ignatius Idogbe Esq and dated 9 August, 2018 was addressed to the Managing Director of UBA. Copies of the letter were also sent to: Governor of CBN; the Chairman, PMT, Sokoto State ABP and the Sokoto State Commodity Board.
In all of these, there has not been any response from UBA. Even when made enquiries from the bank, mum has been the response from the bank. Yet the contractors and the farmers are suffering. Nigerians are waiting for the next action on this matter and will as usual bring you update on the matter.
(Culled from thegazellenews)


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