N500bn Loan Disbursement: Senate Throws Out Ndume’s Motion

The Senate, on Wednesday, rejected a fresh motion by the Chief Whip, Senator Ali Ndume, asking the Chamber to set up an Ad-hoc Committee, to carry out a holistic investigation into the alleged uneven disbursement of N500 billion Naira loan to six geo-political zones by the Development Bank of Nigeria (DBN).

The motion brought to the floor of the Senate by Ndume, was titled, “Uneven Disbursement Of Half A Trillion Naira Loan To The Six Geopolitical Zones By The Development Bank Of Nigeria.”

While presenting the same motion in the 9th Senate, Ndume noted that there was a huge disparity and uneven disbursement of half a trillion naira loan by the DBN to the six geopolitical zones in the country, in 2021.

He said that the Bank’s Annual Integrated Statutory Report 2021 obtained by him on 13th July 2022, from its website showed that the bank disbursed loans worth N483, 000, 000, 000 out of which only 11 per cent went to the 19 states of northern Nigeria, while 47 per cent went to Lagos State alone.

He also noted that the 11 per cent of the loan that went to the entire northern totals about N53.1bn while the 47 per cent that went to Lagos State alone totals about N227bn.

Ndume further added that the South-West accessed the lion’s share which was 57 per cent of the total loan, which was estimated to be about N274, 740, 000,000 only.

He expressed worry that the South-South Zone accessed 17 per cent, (N81, 940, 000, 000); Federal Capital Territory (FCT) and the North-Central Zone, 11per cent, ($53, 020, 000, 000) only; the South-East Zone, nine per cent, (N43, 380, 000, 000); the North-West has 5 per cent, (N24, 100, 000, 000) and the North-East accessed only 1 per cent, N4, 8bn

He said the DBN existed to alleviate financing constraints being faced by Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria by providing finance, partial credit guarantees, and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.

The Senator Ahmad Lawan-led 9th Senate set up an Ad-hoc Committee to probe Ndume’s claims and the panel chaired by Senator Sani Musa (Niger East), investigated the development and submitted its report which was debated, passed and sent to the executive for implementation.

The Senate on Wednesday stepped down Ndume’s fresh motion after Musa clarified that the 9th Senate concluded works on the matter and that the newly appointed Chief Whip actually appended his signature to the document then.

The development did not go down well with the Borno South Senator, who stood to deny that he did not sign the document containing the report of the Ad-hoc Committee.

Ndume said, “The former Senate President (Ahmad Lawan) had insisted that I should be a member of the committee because I was the mover of the motion. However, I was not always around whenever they call the meeting. I don’t want to believe that it was deliberate. I swear by God, I have not seen a copy of the report.

“I am a senator, I raised the motion because my people were shortchanged. This is a serious matter. N500bn was distributed. Other geopolitical zones got 11 per cent while my region got only one per cent. When you say that you have submitted the report and you ambush people to sign the report only when those who are interested were not around.

“I didn’t sign any report, I insisted, I am not a young man. You should have given me the report. I have not seen the report. It is a privilege of mine. What are you talking about? I have not seen the report which was even submitted at the tail end of the 9th Senate.”

The President of the Senate, Akpabio, invited Musa to clarify the situation in order to finally lay the matter to rest.

In his statement, Musa said, “I submitted the report after due consultations with all the agencies like the Bank of Industries, Agricultural Development Bank, Minister of Finance, Minister of Humanitarian Affairs, Small and Medium Enterprises Development Agency and other agencies that are involved in the palliatives or grants.

“When we were deliberating, we included all senators from each geopolitical zone and were meeting. The Chief Whip, (Ali Ndume), attended the meeting twice. The meeting continued. At the time that we wanted to submit the report, I called the Chief Whip but he was in Maiduguri.

“When they submitted the signature sheet to me, I saw that you (Ndume) signed the report of the Committee like any other member.”

At that stage, Ndume interjected and said, “But I have not seen it.”

Sani Musa also responded, “But you signed it. You signed it and it is not an interim document. It is a final report and it has been adopted. It was debated here and adopted.”

The President of the Senate at that stage said, “Can imagine the passion you (Ndume) have shown on this matter. We’re a corrective 10th Senate.

“We’re ready to correct anything that you feel was not properly done. The Senate President has already ruled on the matter that it should be stepped down.

“It doesn’t mean that the matter is permanently closed. I will refer you to order 63. If you want to reopen a closed matter, you have to come up with a substantive motion.”

However, Akpabio put the motion to either step it down or not to vote, and the majority of the members, voted in support, and it was stepped down

The former Minister of Finance, Budget and National Planning, Hajia Zainab Ahmed, had, when she appeared before the Ad-hoc Panel then, said the Federal Government would review the criteria used by the Development Bank in the country.