Senate begins investigation over alleged uneven disbursement of loans by DBN

Senate has begun investigation over alleged uneven disbursement of loans to MSMES in the six geo-political regions by Development Bank of Nigeria.(DBN).

The Senate constituted an ad- hoc committee, following a resolution at plenary on Nov 16 on a motion titled “Uneven Disbursement of half a trillion naira loan to six geo-political regions by the DBN.”

The mandate of the committee headed by Sen.Sani Musa (APC-Niger) was to carry out a holistic investigation on disbursement of loan by DBN since inception of the bank.

Musa in his opening remarks at the maiden meeting of the committee said the purpose of the meeting was to map out strategies and modalities that would assist the committee execute the onerous assignment.

He, however, said although the investigation seems very daunting, but with patriotism , cooperation and commitment,the committee would succeed.

He said the establishment of DBN was to drive the effectiveness of MSMEs and the environment they operate, adding that its establishment was a good idea by the Federal Government and its development partners.

He said the key objective of the DBN was to tackle constraints faced by MSMES through provision of finance and partial credit guarantees to eligible financial intermediaries on a market conforming financial sustainable basis.

He, however, said that there are worries on the disbursement methodology employed by the bank and lack of awareness of its operation, saying that not every MSMEs in the regions , especially in the north knows about the bank.

According to him, the committee will effectively and thoroughly investigate activities and operations of the DBN to ascertain if it conformed to its establishment act, followed due diligence in execution of its mandate.

Musa said the committee was not out to witch hunt any one ,but would evaluate the criteria that qualifies MSMEs to access the loan and at what interest rate.

He said the committee would also review the total amount disbursed to benefiary MSMEs from inception to date and total recovery if any.

Musa also said the committee would examine the source of funding of DBN including contribution from development partners.

He said the committee would interface with the Ministry of Finance,Budget and National Planning,Ministry of Trade and Investment,Central Bank of Nigeria(CBN), Development Bank of Nigeria(DBN).

Others are Small and Medium Scale Enterprises Development Agency,Bank of Industry and Bank of Agriculture.

Sen .Alli Ndume (APC- Boronu)said the investigation was part of what was happening in the financial sector that government deliberately created to address poverty .

He said what happened in DBN was unfortunate saying that his submissions on the motion on uneven distribution of the MSMEs loan was not an allegation but a fact that has not been disputed by DBN.

Ndume said the committee was not out to witch hunt any one , but to find a solution and help DBN to archive its mandate.

Ndume urge the committee members to visit the website of DBN to study its operation since inception.

He said facts indicated that there were some individuals who were intrested in the loan especially in the north ,but could not access the loan.

He said he would be ready to provide the required information to the committee while also urging the committee to visit

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