Investigations have revealed that approximately N531.4 billion allocated for various development initiatives by the Central Bank of Nigeria (CBN) is currently unutilized and sitting idle in the accounts of nine major commercial banks. This discovery follows the decision by the newly appointed CBN Governor, Olayemi Cardoso, to suspend the bank's direct intervention programs.
Upon his inauguration last October, Governor Cardoso halted all ongoing development finance initiatives previously administered by his predecessor, Godwin Emefiele. Cardoso articulated that these programs blurred the distinctions between monetary and fiscal responsibilities. He emphasized a strategic shift back to the CBN’s foundational roles, suggesting a pivot towards advisory capacities that enhance economic growth rather than direct financial interventions.
Under the leadership of the former governor, Emefiele, the CBN launched numerous programs like the Anchor Borrowers Programme and the Nigerian Electricity Market Stabilisation Facility, among others, dispensing over N9.71 trillion during his tenure.
Governor Cardoso's new direction for the CBN includes facilitating regulatory frameworks that activate dormant assets and enhancing consumer credit access. This shift aims to foster private sector investments in key areas such as housing, agriculture, and healthcare.
However, the latest audits by the media have uncovered that a substantial N530 billion from these interventions remains unused. According to the latest financial statements, banks such as Wema Bank, Stanbic IBTC Bank, and Access Bank Plc, along with others like Sterling Bank and Zenith Bank, hold significant portions of these funds.
For example, Zenith Bank alone accounts for N157.81 billion with substantial allocations under various schemes, including the Salary Bailout Scheme designed to assist state governments. Access Bank and Fidelity Bank also hold significant unused amounts earmarked for similar purposes.
Despite repeated attempts to comment on these findings, communications officials at the CBN were unavailable. Nevertheless, an insider confirmed that the bank is aware of these unutilized funds and is exploring legal avenues to ensure their proper use or recovery.
Furthermore, during the recent IMF/World Bank Spring Meetings in Washington DC, Governor Cardoso reiterated that the CBN would no longer engage in development financing but would instead focus on advisory roles to support economic expansion.
The fate of these dormant funds remains uncertain, as commercial bank executives indicate they await further directives from the CBN regarding their disbursement.
Additionally, small business representatives, such as Segun Kuti-George of the Nigeria Association of Small-Scale Industrialists, have expressed concerns about the effectiveness of routing government intervention funds through commercial banks, suggesting direct engagement with industry stakeholders might yield better outcomes.
In related developments, the Nigerian Financial Intelligence Unit and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending are actively pursuing the recovery of debts from the N1 trillion Anchor Borrowers’ loan scheme, with a focus on enhancing compliance and repayment rates among beneficiaries.
This unfolding scenario highlights significant policy shifts and challenges in Nigeria's financial management landscape, reflecting a broader strategy to optimize economic interventions by the Central Bank.
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