Review on effect of anchor borrower programme on the livelihood of Smallholder rice farmers in Nigeria. In: Kolawole Adebayo (ed). Rural Social Protection and Interventions in Nigeria.

Abstract

Nigerian economy in the past decades thrived on the agricultural sector as agriculture is reputed as the key driver for economic growth and development in the early 1960’s. After the discovery of oil in 1970’s (post-oil boom), a decline in the agricultural sector’s share was recorded in terms of its contribution to Gross Domestic Product (GDP) as a result of gross shift from agriculture to oil. Consequently, the shift resulted to economic crisis, like food insecurity, import dependence, inadequate supply of raw materials to industries, excessive borrowing, and balance of payment deficit, high unemployment and inflation rates, rural-urban drift, exchange rate depreciation, among others. To remedy the situation and restore the glory of agriculture, past administrations enunciated agricultural and rural development programmes, which was associated with numerous constraints. As part of the effort to solve the problems of agricultural development, improve the livelihood status and productivity level of Smallholder Farmers in Nigeria, the Federal Government of Nigeria through Central Bank of Nigeria (CBN) initiated Anchor Borrowers Programme (ABP) in 2015. The policy thrust of the programme are provision of farm inputs in kind and cash to Smallholder Farmers to boost production, improve their livelihood status, stabilize input supply to agro processors by building strong linkage between Anchor Companies involved in processing and Smallholder Farmers. This paper reviewed the effect of Anchor Borrower Programme on the livelihood status and productivity level of participant Farmers; in extension its effect on the economy of Nigeria. This paper concludes that information generated from this study will guide CBN, various Stakeholders in ABP and Government at all levels; in their policy formulation and implementation, on how to improve Smallholder Farmers’ productivity, livelihood status and grow Nigerias economy from agriculture.