The Senate ad hoc committee is determined to hold commercial banks accountable for their role in guaranteeing loans under the Central Bank of Nigeria’s Anchor Borrowers Programme. They are focused on recovering the outstanding loans and ensuring proper adherence to protocols and regulations.
Senate Threatens to Hold Banks Accountable for Anchor Borrowers Programme Loans
The Senate ad hoc committee is determined to hold commercial banks accountable for their role in guaranteeing loans under the Central Bank of Nigeria’s Anchor Borrowers Programme. They are focused on recovering the outstanding loans and ensuring proper adherence to protocols and regulations.
( Credit to: Tribuneonlineng )
The committee, tasked with investigating the printing of N27 trillion by the CBN and the disbursement of the Anchor Borrowers Programme, expressed concern about the outstanding sum of N358 billion, which is at risk of being classified as bad debt. The programme, launched in 2015, aimed to create a link between anchor companies and smallholder farmers, providing them with farm inputs and cash to boost agricultural production.
Senator Jibrin Isah, leading the ad hoc team, was not satisfied with the explanations offered by CBN officials regarding loan restructuring. He urged the apex bank to go after the collaterals offered by defaulting beneficiaries through the commercial banks. Senator Isah emphasized the need to recover the outstanding loans and suggested putting a peg on the interest, with a focus on the principal. He also highlighted that the loans must have been guaranteed by the banks, which should be held accountable.
Deputy Governor Bala Bello expressed regret over the lack of supervision by the previous CBN management and assured the lawmakers that the new management was committed to recovering the outstanding loans. He acknowledged that improvements could have been made and emphasized the responsibility to retrieve taxpayers’ money.
Investigating Ways and Means Advances
Moving on to the Ways and Means advances, the committee chairman criticized the former CBN Governor, Godwin Emefiele, for unilaterally approving loans without following the proper protocol. He highlighted the breach of the CBN Act, which stipulates that the Committee of Governors should be the approving authority. The committee also expressed the need to invite Emefiele and questioned the lack of specific project or purchase ties in the document.
Senator Aliyu Wadada echoed the concern, emphasizing the absence of specific project details in the document. The committee discussed the possibility of inviting the former CBN Governor if the current Governor fails to provide satisfactory answers.
Conclusion
In conclusion, the Senate ad hoc committee is determined to hold commercial banks accountable for their role in guaranteeing loans under the Anchor Borrowers Programme. They are focused on recovering the outstanding loans and ensuring proper adherence to protocols and regulations. The committee is also investigating the Ways and Means advances and may invite the former CBN Governor to provide further insight.
