Nigerian Senate revisits ‘uneven’ disbursement of N483bn intervention loan
Edwin Akwueh, Abuja
The Nigerian Senate on Wednesday revisited the alleged uneven disbursement of intervention loans to the tune of N483 billion by development financial institutions among the six geopolitical zones in the country.
Senate consequently, raised a 7- man Ad- hoc Committee to carry out a holistic investigation into the matter and report back in four weeks for further legislative action.
Chairman of the Committee is Senator David Umahi while Other members are senators; Babangida Oseni, Ali Ndume, Sani Musa, Tokunbo Abiru, Ipalibo Banigo and Chizoba Chukwu.
The ad-hoc committee was sequel to the debate of a motion by Senator Ali Ndume which was supported by 64 other senators on the need to holistically investigate the disbursement of loans by Development Bank of Nigeria, NIRSAL and related Banks to micro, small and medium scale enterprises (MSMEs) in Nigeria from 2015 to date.
It would be recalled that the same motion by Senator Ndume and three others was investigated by the 9th Senate and a report was submitted by the panel headed by Senator Sani Musa.
Deliberating on the latest motion this Wednesday, the Senate noted the huge disparity and un- even distribution of half a billion Naira to states in the six geopolitical zones of Nigeria and the states in the country in 2021 by the Development Bank of Nigeria .
“Aware that the Bank’s Annual Integrated Statutory Report 2021obtsined on 13th July, 2022 from the organisation’s website showed that the Bank disbursed a loan worth Four Hundred and Eighty Three Billion Naira (N483,000,000,000) only out of which only 11 percent went to the 19 states of Northern Nigeria, while 47percent went to Lagos State alone.
“Also aware that the 13 percent of the loan that went to the North totals about about Fifty Three Billion , One Hundred and Thirty Million Naira (N53,130,000,000) while the 47 percent that went to Lagos State alone totals Two Hundred and Twenty Seven Billion and Ten Million Naira (N227,010,000,000) only..”
According to the breakdown of the loan presented by Senator Ndume, “the South West got 57 percent worth N274,740,000,000; South South got 17 percent worth N81,940,000,000; North Central got 11 percent worth N53,020,000,000; South East got 9 percent worth N43,380,000,000; North West got 5 percent worth N24,100,000,000; North West and North East got just One percent worth N4,820,000,000.”
It would also be recalled that the Development Bank of Nigeria exists to alleviate financing constraints being faced by Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria through providing finances , partial credit guarantees and technical assistance to eligible financial intermediaries on a market – conforming and fully financially sustainable basis.
Senator Ndume also noted that the top five sectors considered for the loan were oil and gas (42.0 percent), manufacturing (16.0 percent) , agriculture, forestry and fisheries (7 .2 percent), trade and commerce (6.3 percent), and transportation and storage (3.5 percent).
