CENTRAL BANK OF NIGERIA ANCHOR BORROWER PROGRAMME AND RICE PRODUCTION IN KOGI STATE, NIGERIA

Abstract

The Central Bank of Nigeria Anchor Borrower Program (ABP) and Rice Production in Kogi State is an attempt to examine the nature of the program intervention and the implications on Rice Production in Kogi State. The problem has been that, despite the huge amount committed to the program, there exists a big gap between rice production in Kogi State and Consumption demand. a paltry 1.7 million hectares of rice was cultivated in Nigeria out of 4.6 million hectares of land suitable for rice production. The average country rice consumption as of 2016 was estimated at 6.3 million tons while domestic supplies were estimated at 2.3 million tons with a whopping gap of 4 million metric tons. The Implementation of the ABP was not effective in meeting the anticipated goals of food security, reduction in the country's food import bill and creation of a new generation of farmers. The objective was to assess the nature of the Anchor Borrower Program Intervention and its impact on rice production in Kogi State of Nigeria. The paper further examines if the intervention has bridged the import gap for rice consumption in Kogi State or has made the price of locally produced rice more competitive. Developmental State Theory was adopted in the analysis of the variable. Time series and secondary data were used to ascertain the research objectives and outcome. The strategy of the ABP was to ensure farmers pay back the loan given to them with harvested crops. The loan period was marked by the gestation period of the crop. The research found out that there were measurable contributions of Anchor Borrower Program (ABP) intervention to rice production in Kogi State (Vis a Vis Nigeria); but, the exacerbated population growth, elite preference for imported rice and unwholesome practices by promoters of the program has further widened the gap between the local production and consumption in Kogi State. The paper found out that the program contributed to the quality and quantity of rice production in Kogi State; however, there is far gap between the value of funds committed to the program and the level of successes recorded so far. The research recommends that local production of rice must be strategically incentivized by the introduction of a Rice Subsidy and reward for Farmers that meet certain production quotas to create a wider interest in rice production in Kogi State and Nigeria at large.