Skip to main content

Cardoso Likely To Abandon Anchor Borrowers Fund, eNaira, Currency Redesign Policies

The New governor of the Central Bank of Nigeria, Olayemi Cardoso, from all indications is likely to opt out of some key development finance projects of his predecessor, Godwin Emefiele, a move that will halt the bank’s interventionist programmes,which  helped Nigeria exit economic recession twice in five years – between 2016 and 2020 respectively. 

Dr Cardoso was appointed alongside four deputy governors for the CBN by President Bola Tinubu in September 2023 following the suspension of Emefiele and the voluntary resignation of his four deputies.

Cardoso had told a Senate session during his confirmation that he would drop some of the policies of the Emefiele-led administration.

Multiple sources privy to some of the management meetings held by Cardoso and his deputies said he emphatically stressed that his administration would specifically drop the bank’s N63 billion  programme, Anchor Borrowers fund Programme, eNaira (a financial inclusion instrument) and the controversial currency redesign policy introduced to curb banknote counterfeiting and vote buying during the last general elections.


A reliable source at the apex bank told stressed that Cardoso said the the policies was characterised by fraud while disclosing that he would discontinue states’ engagement.

Cardoso, it was said, believes that most of the existing CBN unorthodox policies introduced to support the fiscal side and create buffers for the national economy are not public-oriented.
 
The new management has, however, said it would focus on the core mandate of the central bank – monetary and price stability, promoting sound financial system and exchange rate control.

“The man has cancelled many things, including state engagements,” the source who asked not to be named, said. “They want to focus on the core mandate of the CBN and promote pro-masses policies.” 


Former President Muhammadu Buhari launched the CBN-initiated Anchor Borrower’s Programme (ABP) in Birnin-Kebbi, Kebbi State on November 17, 2015, with an expectation that the scheme would lift thousands of small farmers out of poverty and generate millions of jobs for unemployed Nigerians. It was an intervention programme to cut Nigeria’s N1 trillion importation bill which Buhari said was not sustainable.

A director in the bank said the decision to discard the programme would reverse the gains of the past eight years. He also said Nigeria is now back to the era of allocation of foreign exchange to the importation of items such as rice, wheat, milk and fish, among others, which will contribute greatly to the depletion of the nation’s foreign reserves, especially in the face of low non-oil revenue and burgeoning fiscal deficits.


Thousands of farmers have reportedly defaulted in paying back the ABP loans which, among other things, were expected to increase the banks’ financing to the agriculture sector, help smallholder farmers scale up, achieve food security and ensure self-reliance in rice production.

According to CBN’s 2022 financial report, lending through the ABP stood at N1.079 trillion as of February 28, 2023, out of which N0.960 trillion was due for repayment. About 502 billion has been recovered, with over N5 trillion still under moratorium.

The Anchor Borrowers’ Programme guidelines stipulate that upon harvest, benefiting farmers are to repay their loans with produce (which must cover the loan principal and interest) to an anchor, who pays the cash equivalent to the farmer’s account.

Like the ABP, the Centre of Excellence project was meant to shore up the capacity of Nigerian universities. This intervention was planned for nine federal universities nationwide to enhance post-graduate studies in financial-related courses and the Tertiary Institutions Entrepreneurship Scheme (TIES) to train and finance entrepreneurship ideas of Nigerian university graduates. The first phase covers the University of Ibadan (UI), the University of Nigeria, Nsukka (UNN) and Ahmadu Bello University (ABU), Zaria. Those three universities already have operational centres.


The eNaira is referred to as a unit of account, store of value and medium of exchange. The objective of the eNaira is to aid financial inclusion and advance the boundaries of the payment system to make financial transactions easier for Nigerians.

At the launch of the digital currency in October 2021, President Buhari said the e-Naira was expected to foster economic growth by offering easier access to capital and financial services which will increase economic activities at low/no interest transaction rate.


“It is also expected to provide secure and cheaper diaspora remittance option and make such transactions faster. Due to its traceability, the e-Naira makes it more difficult for individuals or organisations to indulge in fraud,” he stated.

Popular posts from this blog

Tinubu Appoints Chioma Awuzie Substantive Rector, Fed Poly Oko

President Bola Ahmed Tinubu has approved the appointment of Dr. Chioma Irene Awuzie as the substantive Rector of Federal Polytechnic, Oko, Anambra State.  Dr. Awuzie's appointment, which takes effect immediately for a five-year term, follows the recommendation of the Polytechnic's Governing Council, chaired by Sen. Dr. Barnabas Gemade, after a transparent and competitive selection process where she emerged as the leading candidate. Prior to her appointment, Awuzie, who holds a Doctorate Degree in Physical and Materials Chemistry, was a distinguished Chief Lecturer in the Department of Science Laboratory Technology (Chemistry Option) and also Director in-charge of Tertiary Education Trust Fund (TETFund) Projects in the Polytechnic.  Under her stewardship, Federal Polytechnic, Oko, witnessed unprecedented advancements in infrastructure and institutional transformation.  Her leadership facilitated monumental developments across the Polytechnic’s campuses in Oko, ...

#Watchvideo : SECURITY FORCES BURST THE CAMP OF UNKNOWN GUNMEN IN AKOKWA

Security Forces in the state through a coordinated intelligence report has bursted the camp of the unknown gunmen at Akokwa, Arondizuogu after a long gun duel which resulted to the death of some of the criminals and others arrested. These criminal elements have been known to be behind several attacks in the state such as the killing of police men in Mbaise, Aba Branch in Ehime Mbano, burning down of police stations, attack and attempted kidnapping of former Governor Ikedi Ohakim, abduction of Miss. P.P. Johnson, a female soldier in Okigwe and recently the attack in Akokwa that left many dead. It is obvious that these daredevil gunmen have been perpetuating their evil plans unabated until yesterday when their camp was bursted by security agencies. This is another assurance that our security operatives are leaving no stone unturned in the fight against banditry and other related activities. While it has become obvious that the activities of these non state actors are politically motivate...

Valentine Ozigbo Resigns from Labour Party

In a shocking move, against all speculations over the last few days, Valentine Ozigbo, a close ally of Peter Obi, has announced his resignation from the Labour Party (LP). Ozigbo confirmed his decision to Diaspora Digital Media on Wednesday, February 19, 2025, but declined to provide further details, opting instead to share his reasons during an interactive session on X (Twitter) Space.  The session, scheduled for 8 PM, will feature Ozigbo in conversation with Anambra's First Son, @uchepokoye, discussing pressing issues affecting Anambra State, including security challenges, societal fabric collapse, and the hope for a better future. Ozigbo's resignation has sparked interest, with many awaiting his detailed explanation for leaving the Labour Party. His decision comes at a critical time for the party, which has been navigating various challenges in recent months. Credit:  Diaspora Digital Media