Senate investigates uneven disbursement of N500 billion loans by Development Bank

The Senate has set up an ad hoc committee to investigate the alleged unequal disbursement of a loan of half a trillion naira to the six geopolitical zones by the Development Bank of Nigeria (DBN).

The resolution followed a motion proposed by Mohammed Ndume (APC-Borno) and co-sponsored by Ibrahim Bomai (APC Yobe) during Wednesday’s plenary.

The committee is to be chaired by the Chairman of the Senate Banking, Insurance and Other Financial Institutions Committee, Sani Musa.

The other members of the committee are Ibrahim Danbaba (PDP-Sokoto), Ayo Akinyelure (PDP-Ondo), Matthew Urhoghide (PDP-Edo), Uche Ekwunife (PDP-Anambra), Sadiq Umar (APC-Kwara) and Mr. Ndume.

The committee has two weeks to submit its report to the Senate.

The upper house also urged the bank to ensure fair disbursement of the loan across the country’s six geographies.

“We urge the bank to expand its lending facilities beyond the five sectors already captured,” he said.

Introducing the motion, Mr Ndume said the top five sectors being considered for the loan were oil and gas (42.0%), manufacturing (16.0%), agriculture, forestry and fishing ( 7.2%), trade and commerce (6.3%). percent) and transportation and warehousing (3.5 percent).

He alleged that there was huge disparity and uneven disbursement of a half-trillion naira loan to the country’s six geopolitical zones and states in 2021 by the DBN.

He mentioned Lagos as the main beneficiary with 47% of the total loan while the entire northern region got 11%.

The lawmaker said: “The bank’s 2021 annual integrated statutory report obtained on July 13 from the organization’s website indicates that the bank was able to disburse a loan worth N483 billion, of which only 11% went to Nigeria’s 19 northern states, while 47% went to Lagos alone. »

Senate Vice President Ovie Omo-Agege, who chaired the plenary, with support from senators, passed the motion unanimously.


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