Senate Ad-hoc Committee Investigates N30 Trillion Ways and Means Loans

The Senate Ad-hoc Committee, led by Senator Jibrin Isah, has recently commenced an investigation into the N30 trillion Ways and Means loans granted to the Federal Government of Nigeria by the Central Bank of Nigeria (CBN) and commercial banks during the last administration.

The committee’s primary objective is to ensure the recovery of all pending and unserviceable loans or have the funds deducted at source.

The investigative mandate of the Committee includes loans, drafts, and advances made under “Ways and Means” and the “Anchor Borrowers Programme,” which collectively cost the economy N30 trillion.

During the investigation, officials from the Central Bank of Nigeria (CBN), led by the Deputy Governor in charge of Corporate Services, Bala Bello, provided valuable insights into the process of releasing funds upon request by the Federal Government.

However, the Committee discovered that the Apex governor had unilaterally approved the release of funds, which should have been done by the Committee of Governors (COG).

This revelation raised concerns among the Committee members, prompting them to seek further clarification on the matter.

Senator Jibrin Isah explained that the Committee had obtained valuable information that would guide them in the next phase of discussions.

He emphasized that every approval must be given by the Committee of Governors (COG), consisting of the governor and his deputies, and the unilateral approval by the Apex governor was deemed abnormal.

The CBN team was given 24 hours to provide a satisfactory explanation.

The Anchor Borrowers Programme, which amounts to N1.1 trillion, has a 70% repayment rate, while the remaining 30% (N358 billion) was granted to low-income farmers with a high risk of default.

Senator Jibrin stated that the risk lies in the farmers’ lack of equipment and technical know-how to manage the farms effectively.

This situation may result in loan default of about N358 billion.

The Committee advised that, since these loans were processed through commercial banks, the credit risks lie with them, and they should pursue the borrowers for repayment.

The commercial banks are encouraged to engage in round table discussions with the borrowers to recover their funds.