NIGERIAN BANKS DEPLETE N132BN OF CBN's INTERVENTION FUND AMID SCRUTINY
Summary:
A recent report reveals that Nigerian banks have reduced the intervention funds left in their possession to N399.34bn, following a Central Bank of Nigeria (CBN) decision to end the scheme a year ago. Between January and June 2024, N132.05bn was withdrawn from the original N531.4bn without clear explanation in the banks’ financial records. This lack of transparency has raised concerns, prompting calls for further clarification from financial experts and stakeholders.
Key Points:
CBN’s Halt on Interventions: The intervention program, spearheaded by former CBN Governor Godwin Emefiele, included schemes like the Anchor Borrowers Programme and others, disbursing over N9.71tn. However, Governor Olayemi Cardoso discontinued these initiatives in October 2023, citing the need to refocus on CBN’s core monetary responsibilities.
Withdrawal of Funds: Despite this, between January and June 2024, the intervention funds in banks’ possession were reduced by 24.85%, equating to N132.05bn, leaving N399.34bn unused. The withdrawals have yet to be explained in financial reports.
Calls for Clarification: Financial experts, including Dr. Muda Yusuf and Professor Akpan Ekpo, have urged the CBN to provide transparency regarding the withdrawals and remaining funds. The CBN's Corporate Communications department is expected to address these concerns, though no response has been issued yet.
Bank Holdings: Analysis of eight banks’ reports shows varying amounts of intervention funds still held. Zenith Bank, for example, holds N154.81bn, while Access Bank has N152.99bn, among others.
Impact:
The opacity surrounding the management of these funds has led to rising concerns about the oversight of public resources, with further investigations and explanations likely to follow.
Summary:
A recent report reveals that Nigerian banks have reduced the intervention funds left in their possession to N399.34bn, following a Central Bank of Nigeria (CBN) decision to end the scheme a year ago. Between January and June 2024, N132.05bn was withdrawn from the original N531.4bn without clear explanation in the banks’ financial records. This lack of transparency has raised concerns, prompting calls for further clarification from financial experts and stakeholders.
Key Points:
CBN’s Halt on Interventions: The intervention program, spearheaded by former CBN Governor Godwin Emefiele, included schemes like the Anchor Borrowers Programme and others, disbursing over N9.71tn. However, Governor Olayemi Cardoso discontinued these initiatives in October 2023, citing the need to refocus on CBN’s core monetary responsibilities.
Withdrawal of Funds: Despite this, between January and June 2024, the intervention funds in banks’ possession were reduced by 24.85%, equating to N132.05bn, leaving N399.34bn unused. The withdrawals have yet to be explained in financial reports.
Calls for Clarification: Financial experts, including Dr. Muda Yusuf and Professor Akpan Ekpo, have urged the CBN to provide transparency regarding the withdrawals and remaining funds. The CBN's Corporate Communications department is expected to address these concerns, though no response has been issued yet.
Bank Holdings: Analysis of eight banks’ reports shows varying amounts of intervention funds still held. Zenith Bank, for example, holds N154.81bn, while Access Bank has N152.99bn, among others.
Impact:
The opacity surrounding the management of these funds has led to rising concerns about the oversight of public resources, with further investigations and explanations likely to follow.