Reps Probe NAIC, Leadway, Veritas Over N1.12tn Anchor Borrowers Insurance Cover

By Christiana Ekpa

The House of Representatives has commenced a probe into the insurance coverage of the N1.12 trillion Anchor Borrowers Programme (ABP), summoning key industry players over alleged lapses in implementation.

The investigation, led by the House Committee on Nutrition and Food Security chaired by Hon. Chike Okafor (APC, Imo), began on Thursday as part of an ongoing inquiry into the alleged diversion and mismanagement of funds earmarked for the scheme.

At the hearing, a representative of the Managing Director of the Nigerian Agricultural Insurance Corporation (NAIC), Dayo Babaronti, disclosed that the corporation insured only 207,514 farmers valued at N109 billion under the programme—representing about 12 per cent coverage.

He further revealed that the Central Bank of Nigeria (CBN), despite the original policy designating NAIC as the sole insurer, engaged two additional firms Leadway Insurance and Veritas Kapital Insurance—to provide cover for beneficiaries. Both firms were absent at the hearing.

Providing further details, Babaronti said NAIC’s role in other agricultural financing interventions was also limited. Under the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc’s N250 billion facility, NAIC provided insurance cover valued at N8.25 billion.

Similarly, he noted that only N715 million insurance cover was provided for 80 hectares of ginger farms out of the N1.6 billion allocated for the programme. He added that NAIC was excluded entirely from insuring participants under the Bank of Industry’s Agro and Food Processor Scheme, contrary to the policy framework.

Following the presentation, Committee Chairman Okafor said the panel would invite NAIC again for further clarification, citing numerous complaints from farmers and commodity associations over inadequate insurance coverage.

He also faulted the late submission of documents by NAIC, which he said limited the committee’s ability to fully review the corporation’s position ahead of the hearing.

Okafor reiterated the House’s resolve to uncover factors undermining federal government interventions in the agricultural sector, stressing that preliminary findings point to the exclusion of key stakeholders particularly farmers in the design of programmes like the ABP.

“The reason we are here is because the programmes did not succeed 100 per cent. If they had, we would not be here,” he said.

The probe follows a resolution of the House on July 1, 2025, mandating its committees on Nutrition and Food Security; Agricultural Production and Services; Agricultural Colleges and Institutions; and Finance to investigate the alleged misuse of agricultural funds by ministries, departments, agencies, and government-backed schemes operating outside the Federal Ministry of Agriculture and Food Security.