Unused CBN Intervention Funds: Banks Sit on N531.4 Billion, Investigation Shows

According to recent findings by Valid View Network, about N531.4 billion of Central Bank of Nigeria (CBN) intervention funds remain unused in the coffers of nine Deposit Money Banks (DMBs) in Nigeria. This discovery follows the suspension of all CBN intervention funds by the current CBN governor, Olayemi Cardoso, who halted development finance interventions upon assuming office last October.

Under the previous CBN administration led by Godwin Emefiele, several intervention programs were initiated, including the Anchor Borrowers Programme, 100-for-100 Policy on Production and Productivity, Nigerian Electricity Market Stabilisation Facility, N1 trillion Real Sector Facility, Agribusiness/Small and Medium Enterprise Investment Scheme, and Micro, Small and Medium Enterprise Development Fund, among others. An estimated N9.71 trillion in development finance intervention disbursements were reportedly made during that period.

The incumbent CBN governor, Cardoso, emphasized refocusing the CBN to its core mandate and limiting direct development finance interventions. Despite this shift, recent investigations reveal that nine banks retain substantial amounts of unused intervention funds received from the CBN, intended for disbursement to beneficiaries.

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Among the banks, Zenith Bank holds the highest amount of intervention funds (N157.81 billion), followed by Fidelity Bank (N98.85 billion), Access Bank (N94.63 billion), and Sterling Bank (N80.34 billion), among others.

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Detailed breakdowns show various unallocated funds under specific schemes like the CBN Commercial Agriculture Credit Scheme, Salary Bailout Scheme, Real Sector Support Facility, and National Food Security Programme.

Efforts to obtain official responses from the CBN were unsuccessful, but a top CBN official acknowledged awareness of the situation, noting that there are laid down rules for recovering unused funds from banks.

Meanwhile, small business operators have urged the CBN to allow banks to complete the disbursement of unused funds. Segun Kuti-George, National Vice Chairman of the Nigeria Association of Small-Scale Industrialists, emphasized the importance of proper consultation with industry stakeholders before implementing decisions related to intervention funds.

In related developments, the Nigerian Financial Intelligence Unit (NFIU) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) are intensifying efforts to recover outstanding debts from defaulters of the Anchor Borrowers’ Scheme, with only 30% of disbursed funds recovered to date.

The email communication seen by correspondents confirmed the CBN’s suspension of new loan applications under existing development finance intervention programs, while existing loans with approved interest rates are expected to be fully repaid according to the terms and conditions.