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 thegazellenews.com, 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.
Thegazellenew.com 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, thegazellenews.com can confirm, has left heavy negative effects on the contractors. Thegazellenews.com investigation revealed that four of the contractors are about to lose their properties used as collateral to borrow money to find the projects.
Thegazellenews.com 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, thegazellenews.com can confirmed, are not limited to Sokoto State but also happening in other states of the federation.
Documents in possession of thegazellenews.com, 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 thegazellenews.com, 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, thegazellenews.com 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.
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.
