LAGOS, Nigeria (VOICE OF NAIJA)-The Senate has issued a directive to the Central Bank of Nigeria (CBN) to recover the sum of N1.079 trillion disbursed as loans to farmers under the Anchor Borrowers Loans scheme.Â
The initiative was part of the broader N30 trillion overdraft extended to the ex-President Muhammadu Buhari-led administration by the CBN from 2015 to 2023.
The chairman of the Senate’s ad-hoc committee Senator Jibrin Isah, investigating the N30 trillion overdraft, emphasised the necessity for the CBN to take proactive measures in retrieving the outstanding loans.
During an investigative hearing organised by the committee, Senator Isah underscored the importance of holding both borrowers and lending institutions accountable for the loans distributed.
READ ALSO: Senate Grills CBN Officials Over N30 Trillion Overdraft
“We are talking about N358 billion that hasn’t been repaid and is at the risk of default,” Senator Isah stated, expressing concern over the significant amount of outstanding debt. He urged the CBN to enforce stricter measures to ensure loan repayment, including the imposition of interest rate pegs and the utilisation of collateral assets.
Addressing the committee, Deputy Governor of Corporate Services at the CBN, Bala Bello, acknowledged the challenges in loan recovery and attributed them to insufficient oversight by the previous CBN management. However, Bello assured the committee that the current CBN administration is committed to recovering the outstanding loans and restoring accountability in financial operations.
In addition to the Anchor Borrowers Loans scrutiny, the Senate also examined the issue of the N30 trillion Ways and Means, expressing dismay over observed breaches in CBN protocols.
Senator Isah highlighted concerns regarding unilateral loan approvals by the former CBN Governor, Godwin Emefiele, without proper authorization from the Committee of Governors.
Emphasising the need for transparency and accountability in financial transactions, he said they also want to know the total figure of the Ways and Means because the figure they have didn’t add up.
The Senate’s directive underscores the importance of effective oversight and prudent financial management in safeguarding public funds and ensuring accountability in government institutions.