Senate moves to probe Development Bank’s disbursement of loans under Buhari govt

The Nigerian Senate on Tuesday resolved to probe the disbursement of loans by the Development Bank of Nigeria from 2015 till date.

This is to ascertain its equitability across the country.

The Senate resolution followed a motion sponsored by Senator Mohammed Ali Ndume, representing Borno South Senatorial District, who stressed the need for investigation of the bank’s “disbursement of loans to NIRSAL and related Banks to Micro, Small and Medium Scale Enterprises, MSMEs, in Nigeria’, alleging that there was huge disparity in the disbursement of loans on geopolitical aggregation.

Ndume expressed concern that the bank had disbursed over half a trillion loan to business owners, but not in compliance with its mandate of equitable distribution, as much of the loan went to the Southwest geopolitical zone.

He said: “Aware that the Bank’s Annual Integrated Statutory Report, 2021 obtained on July 13, 2022 from organisation’s website showed that the bank disbursed a loan worth N483,000,000.00 (four hundred and eighty-three billion naira) only out of which on 11% went to the 19 States of Northern Nigeria, while 47% went to Lagos State alone.”

He rolled out the statistics, insisting that some zones, including the North East were shortchanged.

In his contribution, Senator Jibrin Isah, representing Kogi East Senatorial District, disclosed that World Bank and International Monetary Fund, IMF have shares and have set standards in the distribution of loans by the Nigeria Development Bank.

He explained that the bank cannot disburse loans outside the scope handed over to it, as this has been the global standard of development banks.

Other senators, who contributed to the motion, called for caution in the investigation of activities of the Development Bank, while they suggested the constitution of a committee to investigate DBN’s activities.

Reacting to the prayers of the motion, Senate President, Godswill Akpabio named a 7-man ad-hoc Committee with Senator David Umahi as Chairman.

Other members are: Babangida Oseni, Mohammed Ali Ndume, Mohammed Sani Musa, Adetokumbo Abiru, Ipalibo Banigo and Chizoba Chukwu.

The Committee was asked to turn in reports in four weeks.