As Cameroon Ladgo dam opening puts Nigeria on high alert, CBN says N700bn farmers’ loan threatened; complete Hausa-Dasin dam _ Fintiri tells Tinubu

Nigeria’s apex financial regulatory body CBN has alerted that the opening of the Lagdo Dam in Cameroon would potentially distort the repayment capacity of around 3.04 million local farmers who are beneficiaries of its Anchor Borrowers’ Programme .

The concerns about flooding in several states like Benue and Anambra where water levels are rising quickly and flooding already impacting Niger state, about N700 billion in loans extended through the program hangs in the balance.

The National Emergency Management Agency has indicated that the opening of the dam could affect as many as 13 frontline states in Nigeria. The unfolding situation has caused water levels to swell in certain conditions, posing a direct challenge to agricultural activities and economic stability.

According to data from the CBN, as of December 2022, N289.19 billion had been disbursed to approximately 1.25 million farmers across 19 states under the Anchor Borrowers’ Programme.

The distribution of funds varied, with Sokoto receiving the largest share of N49.25 billion, supporting 179,914 farmers. Jigawa followed closely with N48.14 billion allocated to 175,685 farmers, while Zamfara secured N34.46 billion to aid 115,894 farmers.

Other notable beneficiaries according to CBN are Taraba, with N31.1 billion distributed to 154,407 farmers and Adamawa receiving N30.69 billion to support 317,513 farmers.

In contrast, states like Lagos secured the smallest loan amount, obtaining N483 million to assist 2,460 farmers. Similarly, Imo received N1.07 billion designated for 4,415.81 farmers, while Osun and Anambra were allocated N1.26 billion and N1.43 billion, respectively, supporting 4,621 and 6,647 farmers. Abia state concluded the list with N2.67 billion granted to aid 8,152 farmers.

The federal government has alerted states and relevant government agencies over plans by the Cameroonian government to open the flood gate of Lagdo Dam, on the Benue River.

The Cameroonian authorities said they will open the dam “in days ahead, due to heavy rainfall around the dam catchment area in Northern part of the country.

A letter dated August 21, 2023, and signed on behalf of the Permanent Secretary of the Foreign Affairs ministry by Umar Salisu, Director, African Affairs, addressed to the Director General of the National Emergency Management Agency (NENA), urged NEMA to take “ necessary proactive steps and actions that will mitigate the damage a well as sensitize the populace living in such areas for vigilance and all necessary precautions “

The letter noted that “ it is pertinent to note that when the release of water becomes necessary, the authorities of lagdo dam will be releasing on modulated variable mall amount of water at a time, in order to mitigate and avoid damages that the released water may cause along the River Benue basin both Cameroon and in Nigeria.

The effect of the release of water from this dam is largely felt on surrounding regions in about 13 states in Nigeria, including Kogi, Benue, Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe

Others include Niger, Nasarawa, Kebbi, Kogi, Edo, Delta, Anambra, Cross River, Rivers, and Bayelsa States.

The government, through the Ministry of Water Resources and Sanitation, during the week, also advised the flood-prone states to embark on aggressive comprehensive sensitization campaigns, to ensure unobstructed drainage systems and strategic relocation of residents living along the riverbanks to safer ground.

Meanwhile, the Adamawa state commissioner for Environment has appealed to President Bola Tinubu to complete the construction of the Hausa-Dasin Dam in Adamawa State and the dredging of the River Benue, to mitigate flooding and it’s devastating effect on communities.

He explained that the Fintiri administration has put in place preventive measures to mitigate the flooding usually caused by opening of Lagdo dam in Cameroon republic.

Adamawa state being one of the states along the River Niger that usually suffers the consequences and the prediction by NEMA of impending floods in the state has Governor Ahmadu Umaru Fintiri worried.

He believes these yearly floods caused by the release of water from the Lagdo dam can be permanently mitigated if President Bola Tinubu were to complete the construction of the Hausa-Dasin Dam in Adamawa State and the dredging of the River Benue.

The Adamawa state government says it is very much prepared to do all it can to save live and properties of its residents one of which is to relocate all communities along the river banks to higher ground.

The Anchor Borrowers’ Programme was introduced on November 17, 2015, during the administration of former President Muhammadu Buhari.

This initiative was established to establish a connection between anchor companies responsible for processing and smallholder farmers engaged in cultivating essential agricultural commodities. However, recent revelations from the International Monetary Fund highlight that only 24 per cent of the loans disbursed under this CBN program have been successfully repaid.

As Nigeria grapples with the aftermath of the Lagdo Dam’s opening and the resultant flooding in multiple states, the financial well-being of millions of farmers remains uncertain.

The CBN, government agencies, and stakeholders are closely monitoring the situation, as the economic impact of these challenges could ripple across various sectors.