Senate launches probe into CBN’s anchor borrowers’ programme, ways and means loans under Buhari, Emefiele

Nigeria’s Senate, on Monday, inaugurated an ad-hoc committee to investigate the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ Programme (ABP) and the use of Ways and Means financing by the federal government.

This move comes amidst concerns about the country’s rising debt profile, food insecurity, and high inflation.

Speaking on Monday in Abuja while inaugurating a 17- member ad-hoc Committee to probe the ‘Ways and Means’, President of the Senate Godswill Akpabio charged the Committee to spend six weeks in carrying out the exercise.

The move comes after a decision by the Red Chamber to probe details of the programmes based on monies given to state governments, manufacturers, aviation sector, banks, excess funding in the power sector, amongst others which raised the current debt profile of the country.

This was part of resolutions of the Senate after a debate over the report of the National Assembly Joint Committees on Banking, Insurance and Other Financial Institutions (BIOFI), Finance, National Planning, Agriculture, and Appropriation on the state of the economy.

The CBN’s Anchor Borrowers’ Programme, a key agricultural intervention initiative, has disbursed over N10 trillion ($23.8 billion) in funds. The Senate aims to scrutinize the programme’s effectiveness, transparency, and potential areas for improvement.

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Furthermore, the committee will probe the details of Ways and Means financing, a controversial practice where the CBN lends money directly to the government to cover budget shortfalls. The Senate is particularly interested in how these funds were allocated across various sectors, including state governments, manufacturers, and the power sector.

According to proponents of the probe, a thorough investigation is necessary to identify potential loopholes and ensure greater accountability in the CBN’s development finance activities. The findings are expected to inform future policies aimed at promoting economic growth and mitigating financial risks.

This development comes alongside the Tinubu administration’s ongoing probe of former CBN Governor Godwin Emefiele, under whose watch the Ways and Means loans were approved.

The Senate’s investigation adds another layer of scrutiny to the CBN’s activities and its role in managing Nigeria’s finances.

The probe committee is chaired by Senator Jibrin Isah (APC, Kogi East) and has Senators Asuquo Ekpenyong (APC, Cross River South) Mohammed Tahir Monguno (APC, Borno North) Victor Umeh (LP, Anambra Central) and Olamilekan Adeola (APC, Ogun West) as members.

Others are Senators Sani Musa (APC, Niger East) Aliyu Wadada (SDP, Nasarawa) Abdul Ningi (PDP, Bauchi Central) and Ipalibo Banigo Harry (PDP, Rivers West).

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