Senate probes ‘uneven’ disbursement of N.5trn loans to states, geo-political zones
Senate has constituted a seven-member ad-hoc committee to investigate alleged uneven disbursement of N.5trn loan to the six geo-political zones by the Development Bank of Nigeria (DBN).
Senate, in its resolution on a motion sponsored by Senator Ali Ndume and co-sponsored by Senator Ibrahim Bomai, Wednesday, further urged the DBN to ensure equitable disbursement of the loan to all the geo-political zones, even as it called on the bank to expand its facilities beyond the sectors already captured.
The top five sectors considered for the loan include; oil and gas (42.0 per cent), manufacturing (16.0 per cent), agriculture, forestry and fishery (7.2 per cent), trade and commerce (6.3 per cent), including transportation and storage (3.5 per cent).
Deputy President of the Senate, Senator Ovie Omo-Agege, who presided over Wednesday’s plenary, named Senator Sani Musa as the chairman of the ad-hoc committee while Senators Ibrahim Danbaba (North West); Ayo Akinyelure (South West); Mathew Urhoghide (South South); Ali Ndume (North East); Uche Ekwunife (South East) and Sadiq Umar from the North Central were nominated as members.
The committee was given two weeks to complete its findings and report back to the senate in plenary.
Presenting the motion, Ndume alleged a huge disparity and uneven disbursement of half a trillion naira loan to the six geo-political zones and states in the country in 2021 by the DBN, as he specifically mentioned Lagos State as the major beneficiary with 47 percent of the total loan while the entire Northern region got 11 percent.
“The bank’s Annual Integrated Statutory Report 2021 obtained on 13th July, 2022 from the organisation’s website, the bank was able to disburse a loan worth N483,000,000 only out of which only 11% went to the 19 states of Northern Nigeria while 47 per cent went to Lagos State alone.
“The 11 per cent of the loan that went to the North totals about N53,130,000,000 and that the 47 per cent that went to Lagos State alone totals N227,010,000,000 only,” said Ndume.
The senator also expressed concern that ‘the loans were meant for the six geo-political zones, where the data showed that the South West accessed the lion’s share with 57 per cent of the total loan, which is estimated to be around N273,740,000,000 only.’
According to Ndume, ‘the South-South accessed 17 per cent which is roughly N81,940,000,000. The Federal Capital Territory (FCT) and the North Central accessed 11 per cent which was N53,020,000,000 only, South East accessed a paltry 9 per cent which was roughly N43,380,000,000 only, the North West, which has 5 per cent accessed N24,100,000,000 only, while the North East accessed only 1%, the least share of the total loan at roughly N43,820,000,000 only.’
Ndume maintained that the DBN exists to alleviate financing constraints faced by the Micro, Small and Medium Scale Enterprises, MSMEs in Nigeria through providing finance, partial credit guarantees, and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.
He, however, noted that ‘lack of awareness of the existence of the loan or even the DBN, religious beliefs, and lack of formalisation of business, as most loans require that one has a registered company, corporate bank account and a good business plan, have aided the uneven disbursement.’
