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NIRSAL Debunks Corruption Allegation Over Handling Of ABP, Threatens Litigation

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The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has debunked reports that the Central Bank of Nigeria has suspended further disbursements to the agency over allegations of corruption in its handling of the Federal Government’s Anchor Borrower’s Programme.
An online newspaper, The Gazette, had claimed that the agency’s “flagship Anchor Borrowers’ Programme” and its Chief Executive, Aliyu Abdulhameed, had been enmeshed in endemic graft, which has all but run down the commercial agriculture scheme.
The publication had cited a March 10, 2021 memo from the CBN, which referred to a February 24 meeting in which the decision was taken to suspend further loans for the scheme.
But NIRSAL says not only are the claims erroneous, the publication also betrayed the writer’s lack of understanding of the relationship between the agency and the CBN, and operations of the Anchor Borrower’s Scheme.
It said: “In their desperation to throw mud, a routine communication between CBN and NIRSAL Plc to activate a workable loan repayment/recovery agreement with Anchor Borrowers’ Programme (ABP) farmers was transformed into a ‘corruption scandal’ allegedly perpetrated by NIRSAL Plc’s leadership.
“The report is not only lacking in credibility but is also totally ridiculous when clear facts and contexts are considered.”
NIRSAL Plc, it says, is a wholly-owned investee company of the CBN, incorporated with the main mandate to de-risk agriculture and facilitate agribusiness.
Being the sole owner of NIRSAL, the CBN has the right to assign to it other tasks that are related to its core mandates such as issuance of credit risk guarantees to banks and investors for agriculture and agribusiness projects, technical assistance to project owners and financiers, rating and incentivising actors in the agricultural value chain and agricultural finance market place, among others.
Apart from its core mandate of credit risk guarantee operations, it can also serve as a Participating Financial Institution in the CBN’s Anchor Borrowers’ Programme through which the CBN provides loans to farmers on very concessional terms.
It debunked as fallacy the assumption that NIRSAL is synonymous with the Anchor Borrower’s Programme, as it is just one of the many Participating Financial Institutions involved in the programme.
It explained: “Contrary to the impression given in these false reports, NIRSAL Plc is one of several Participating Financial Institutions (PFIs), not the only one involved in the ABP. In fact, the scheme was launched in 2015 (two years before NIRSAL Plc’s involvement) by President Muhammadu Buhari to create a linkage between anchor companies involved in the processing of agricultural produce and smallholder farmers of the said produce. The idea that ABP is solely operated by NIRSAL Plc is completely ludicrous and incompatible with the facts.”
“The roles of NIRSAL as an agricultural organization is to organize farmers, register them and present them to the CBN for consideration as borrowers for its agricultural loans after due diligence and credit checks to ensure their creditworthiness. The CBN creates these loans directly in the names of the farmers and the farmers’ bank accounts are credited with the loans accordingly.
“All funds disbursed by the CBN under the ABP are accountable down to the level of the farmer and his farm, including the farmer’s biometrics, home address, telephone number, bank account number, BVN, photograph, farm location, current loan status, and so on.
“NIRSAL Plc, together with field officers (DFOs) of the Development Finance Department (DFD) of the CBN, monitor these farmers to ensure proper loan utilization throughout their growing cycle.
“At harvest, farmers are expected to pay back their loans in cash or kind or both.
“Where farmers cannot pay back over the tenor of their loan facility, the CBN in most cases provides these farmers additional time to enable them to pay back.
“Where farmers refuse to pay back, the CBN rightly suspends further loan disbursements to these farmers, gives them forbearance to pay back in return for re-consideration to re-join the programme through the PFI that organized them in the first place.
“It is this ordinary, internal, day-to-day programme management and administrative communication between two related institutions that these unscrupulous online media platforms have illegally acquired and made an issue of ‘corruption scandal against NIRSAL Plc and its Management’.”
It insisted that in line with global standards in credit management and for the proper management of schemes like the Anchor Borrower’s Programme, the CBN can suspend disbursement of its loans to those farmers, under any PFI window, where they (farmers) prove recalcitrant in repaying their loan obligations.
It said: “The CBN does this via the PFI window that presented these farmers for enrollment into the programme in the first place. This is the right step to protect the scheme and ensure that progress towards the attainment of its objectives is not compromised.
“Therefore, when accumulated loans are not paid, indebted farmers can be suspended from further accessing the facility until they repay their outstanding commitment.”
It said that contrary to the false stories bandied about by “some integrity-challenged journalists and their sponsors,” NIRSAL Plc could not have taken liberties with ABP funds because no such funds are under its absolute control, and NIRSAL itself is owned by the CBN, so its entire corporate accounts are operated in and within sight of the CBN as its own banker.
“Against this backdrop, the notion that a typical CBN internal administrative communication, to its own company, was tantamount to a sanction against NIRSAL PLC for ‘corruption’ is a deliberately misplaced, outright falsehood that is totally lacking in basic credibility,” said the Management.
The agency said it has a positive track record as a Participating Financial Institution in the CBN Anchor Borrowers’ Programme, which is characterised by quality performance and significant milestones, adding: “It is also an unimpeachable fact that our performance in loan management and loan repayment/recovery from farmers under the ABP, a process which is still ongoing as more farmers are harvesting and selling their produce, is a solid one that compares favourably with peers in the scheme.”
It also defended its Chief Executive: “Under the oversight and inspiration of Mr. Godwin Emefiele, the CBN Governor and board chairman of NIRSAL Plc, Mr. Abdulhameed, working with a competent and highly motivated team, has built NIRSAL Plc, from the ground up, into an effective high-profile institution that has facilitated over N120 billion of critical funding into key agricultural projects in the five short years of its corporate existence.
“This success seems to have become his albatross, fueling the anger of a cabal that is determined to rubbish the successes of the Buhari administration’s passionate focus on agriculture and agribusiness in their desperation to hound and destroy Mr. Abdulhameed.
“But we are not intimidated. We are confident that, like previous campaigns of falsehood against NIRSAL Plc’s leadership, this will also fail because our performance speaks for us and the truth will ultimately prevail.
“We will not allow falsehood and other invented distractions to stop us from doing justice to the credible work we are doing to boost Nigeria’s agriculture/agribusiness economy and the overall economy.”
NIRSAL demanded that the newspaper retracts its defamatory publication, failing which a legal process will be initiated against it.

BIG STORY

JUST IN: National Assembly Unseals Natasha’s Office

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The office of Senator Natasha Akpoti-Uduaghan, representing Kogi Central, has been reopened by the National Assembly after being sealed for over six months.

The unlocking occurred on Tuesday morning, with the Sergeant-at-Arms of the National Assembly, supported by security operatives, officially removing the seal from her office located in Suite 2.05 of the Senate Wing.

Sealed Since March Over Suspension

The office had been sealed since March 6, 2025, following the senator’s suspension from the Red Chamber. A video shared on Tuesday captured the moment the Deputy Director of the Sergeant-at-Arms, Alabi Adedeji, removed the red tape from the door.

“I, Alabi Adedeji, Deputy Director, Sergeant-at-Arms, hereby unseal the office. The office is hereby unsealed. Thank you,” he announced during the process.

Senator Faced Senate Suspension Over Protest

Senator Akpoti-Uduaghan had been suspended for six months in March after staging a protest against the reassignment of her seat by Senate President Godswill Akpabio during a plenary session on February 20. The Senate cited misconduct as grounds for the disciplinary action, barring her from all legislative activities

Court Deems Suspension Unconstitutional

Although the senator’s suspension officially lapsed in September 2025, she had yet to resume her legislative duties due to resistance from the Senate leadership and pending legal matters. On July 4, the Federal High Court in Abuja ruled the suspension as excessive and unconstitutional, providing a legal boost to her efforts to return to the chamber.

Return to Office Still Uncertain

Despite writing to the Senate to inform them of her readiness to resume, her request was reportedly turned down by the National Assembly. While the unsealing of her office suggests progress, it remains unclear whether she will be granted full access to the facility or allowed to participate in Senate proceedings.

Plenary Resumption on October 7 May Bring Clarity

As the Senate prepares to reconvene on October 7, it is still uncertain whether Senator Akpoti-Uduaghan will be able to return to her seat alongside her colleagues. A formal Senate resolution on her status is still pending.

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BIG STORY

K1 De Ultimate Inspires Wasiu Haruna Ishola L1’s Upcoming Album Masterpiece

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Fuji and Apala fans are in for a treat as contemporary Apala-Fuji star, Wasiu Haruna Ishola L1, prepares to release his highly anticipated double album, Masterpiece, in Lagos this November. Supported by Big Bodeyy Promotions, the launch is scheduled for the second week of the month.

The album offers two distinct listening experiences — one side rooted in Fuji rhythms and the other in pure, original Apala music — giving audiences a fresh yet authentic take on indigenous Nigerian sounds.

Popularly known as Lagunja 1, Wasiu Haruna Ishola is the son of late Apala legend Haruna Ishola Bello and brother to renowned musician Musiliu Babatunde Haruna Ishola. With Masterpiece, he both honours his lineage and recognises the influence of his mentor, Alhaji Wasiu Ayinde K1 De Ultimate, whose artistry helped shape his approach to music.

“This album is both a tribute to tradition and a bold step into the future,” Lagunja 1 said. “It is dedicated to my late father and to my mentor, Alhaji Wasiu Ayinde K1 De Ultimate, while embracing digital innovation.”

He stressed that Nigerian musicians must embrace global advancements to rejuvenate audience tastes:

“We have to explore more, acquire new knowledge and take advantage of the ever-evolving digital world,” he added.

With its seamless blend of heritage and modern artistry — and inspired by K1 De Ultimate’s groundbreaking style — Masterpiece is positioned to be one of the standout Nigerian music releases of the year.

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BIG STORY

NBS Announces 4.23% Economic Growth, Labour Disagrees

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The National Bureau of Statistics (NBS) has reported a 4.23 per cent growth in Nigeria’s Gross Domestic Product (GDP) for the second quarter of 2025, indicating an improvement from the 3.48 per cent recorded in the same period last year. However, labour unions and stakeholders in the real sector have questioned the relevance of the figures, citing a disconnect between economic data and the realities faced by Nigerians.

The NBS attributed the improvement to the recent rebasing of the GDP, using 2019 as the new base year. The agency stated that previous quarterly estimates were adjusted to reflect the rebased series, offering more accurate sectoral comparisons.

“This procedure provided a new quarterly GDP series, which is compared to the 2025 second quarter estimates,” the NBS noted. “GDP grew by 4.23 per cent (year-on-year) in real terms in the second quarter of 2025.”

Labour Rejects GDP Figures, Cites Harsh Economic Conditions

Despite the reported growth, senior officials of the Nigeria Labour Congress (NLC) expressed skepticism about the accuracy and practical impact of the data. One official, who spoke on condition of anonymity, argued that the figures fail to reflect worsening conditions for workers and average citizens.

“When we talk about GDP growth, the key question is how it impacts the lives of the people. If it does not translate into better living conditions, then it is meaningless,” the official said. “This is what we call growth without development.”

He also questioned the basis of the GDP calculations, claiming they were being manipulated ahead of elections. “Statistics that don’t reflect on-ground realities are useless to the citizenry,” he added.

Attempts to get a response from the President of the Trade Union Congress (TUC), Festus Osifo, were unsuccessful.

Another senior NLC official criticized the reported unemployment rate of about four per cent, calling it “a falsehood” driven by neoliberal policies. He insisted that unemployment remains far higher than official figures suggest and warned that such discrepancies undermine economic planning.

“Do you see the 4.23 per cent GDP growth in your life? I don’t,” the official stated. “Conditions are worsening, workers are suffering, yet officials claim the economy is growing.”

Oil Sector Fuels GDP Rebound

According to the NBS report, the nominal value of Nigeria’s economy reached ₦100.73 trillion in Q2 2025, up from ₦84.48 trillion in the same period of 2024, marking a 19.23 per cent year-on-year increase. The surge was driven largely by the oil sector, which saw average daily crude oil production rise to 1.68 million barrels per day, compared to 1.41 million barrels per day in Q2 2024.

The oil sector recorded real growth of 20.46 per cent, a significant turnaround from 1.87 per cent in the previous quarter. Its contribution to overall GDP rose to 4.05 per cent, up from 3.51 per cent a year earlier. The mining and quarrying sector, which includes crude petroleum, coal, and other minerals, also posted real growth of 20.86 per cent. Coal mining expanded by 32.59 per cent, while quarrying rose by 50.41 per cent.

Non-Oil Sector Remains Economic Anchor

Despite strong oil performance, the non-oil sector remained dominant, contributing 95.95 per cent to GDP. It grew by 3.64 per cent in Q2 2025, compared with 3.26 per cent in Q2 2024 and 3.19 per cent in Q1 2025.

Growth in the non-oil sector was driven by agriculture, telecommunications, real estate, trade, construction, finance, and energy services. Agriculture grew by 2.82 per cent, rebounding from just 0.07 per cent in the previous quarter, though its share of GDP declined to 26.17 per cent from 26.53 per cent.

Industrial growth more than doubled to 7.45 per cent, while the manufacturing sector slowed to 1.60 per cent, with its contribution dropping to 7.81 per cent.

Mixed Sectoral Performance

The construction sector expanded by 5.27 per cent year-on-year but contracted sharply on a quarterly basis. The services sector grew by 3.94 per cent, slightly higher than the 3.83 per cent recorded a year earlier.

Trade accounted for 18.28 per cent of GDP but saw a slowdown in growth to 1.29 per cent from 1.82 per cent the previous year. Information and communication services grew by 6.61 per cent, contributing 11.18 per cent to GDP, while finance and insurance surged by 16.13 per cent.

Transport and storage grew significantly by 22.09 per cent, while electricity, gas, steam, and air conditioning rose by 11.47 per cent. Water supply, waste management, and remediation services expanded by 10.60 per cent, reflecting broad growth in the utilities subsector.

Finance Minister Stresses Need for Higher Growth

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has previously stressed the need for higher growth to lift the poorest Nigerians out of poverty. In July, Edun reiterated that Nigeria must sustain at least seven per cent annual growth to make a tangible impact on the lives of vulnerable citizens.

“To really help the poorest and most vulnerable, we need to be doing around seven per cent per annum,” Edun said during a policy meeting in May.

Private Sector Voices Concern Over Economic Disconnect

Members of the organised private sector also expressed caution despite the reported GDP growth. In separate interviews, they warned that the macroeconomic gains were not being felt by businesses or households.

Dr. Femi Egbesola, President of the Association of Small Business Owners, said: “GDP is growing, and that is a sign of hope. However, it is not translating into the daily realities of businesses and households. That is not happening at the moment.”

He described the challenges facing the manufacturing sector as alarming and warned that the collapse of small businesses could lead to worsening hardship.

“When the manufacturing sector is under pressure, it’s a red flag. If this continues, we may see growth in large corporations, but small businesses will collapse, and households will suffer,” Egbesola added.

He also pointed to declining trade activity, citing low consumer purchasing power and trade barriers as contributing factors. He urged the government to look beyond headline numbers and address the economic struggles of ordinary Nigerians.

Segun Kuti-George, National Vice President of the National Association of Small-Scale Industrialists, echoed similar sentiments. While acknowledging the GDP growth as a positive sign, he stressed that real progress must come from the real sector.

“Growth in services is good, but sustainable economic development hinges on real sector expansion. If that sector is not growing, more policy attention should be directed there,” he said.

Credit: The Punch

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