The Senate Ad-hoc Committee investigating the N30 trillion Ways and Means has emphasized the importance of recovering loans extended by the Central Bank of Nigeria and Commercial Banks to the previous administration.
Led by Senator Jibrin Isah, the Committee interacted with officials from the Central Bank of Nigeria to discuss the recovery of outstanding and nonperforming loans, urging for swift action to recoup the funds.
During the investigation, the Committee focused on loans, drafts, and advances provided to the Federal Government under the “Ways and Means” and the “Anchor Borrowers Programme,” amounting to N30 trillion.
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The Committee expressed concerns over instances where the CBN governor unilaterally approved fund releases, emphasizing the need for transparency and adherence to standard procedures.
While the Anchor Borrowers Programme has shown a commendable repayment rate of 70%, there remains a risk of default amounting to N358 billion, particularly from low-income farmers lacking the necessary resources and expertise to effectively manage their farms.
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The Committee highlighted that the credit risks associated with these loans rest with the commercial banks and encouraged them to pursue repayment from the borrowers.
Moving forward, the Committee advised commercial banks to engage in discussions with the borrowers to facilitate the recovery of the guaranteed loans. By emphasizing the importance of collaboration and accountability, the Committee aims to ensure the efficient recovery of outstanding funds and uphold financial integrity.
