Senate uncovers $400m intervention funds lying dormant in banks

The Nigerian Senate has revealed the discovery of $400 million in intervention funds lying dormant in banks and financial institutions for several years.

This revelation, made by Senator Natasha Akpoti-Uduaghan, Chair of the Senate Committee on Local Content, on Thursday, during a session with the Nigerian Content Development and Monitoring Board (NCDMB), raises questions about transparency and the effectiveness of resource allocation.

The details of the uncovered funds paint a concerning picture. $30 million was reportedly budgeted for capacity building in the oil and gas sector, while another $20 million was earmarked for women in oil and gas businesses.

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Additionally, $50 million allocated for research and development remained untouched within the Central Bank of Nigeria. The lack of utilization of these funds, despite their intended purposes, highlights potential issues of bureaucratic inertia, inadequate oversight, or unclear disbursement mechanisms.

The Senator questioned why the funds were lying fallow without Nigerians accessing them and called on the (NCDMB) to make the funding opportunities accessible to ordinary Nigerians.

According to her, the funds are capable of attracting oil and gas equipment manufacturers to Nigerian Oil and Gas Parks Scheme (NOGaPS) facilities, as well as increase access to affordable finance by the manufacturing entities.

Potential Implications and Need for Further Inquiry:

This discovery has several potential implications.

Firstly, it raises concerns about the government’s commitment to effectively investing in critical sectors like oil and gas. Leaving such significant funds idle for years suggests a lack of urgency or a disconnect between budgetary allocation and actual implementation.

Secondly, the revelation undermines efforts to promote transparency and accountability in public finances. The Senate’s role in uncovering these dormant funds underlines the need for enhanced transparency mechanisms and stricter oversight of resource allocation.

Further inquiry into this matter is crucial. The Senate Committee on Local Content should investigate the reasons for the funds’ inactivity, identify any responsible parties, and recommend corrective actions. Additionally, a wider review of other intervention funds across different sectors might be necessary to ensure optimal utilization and efficient allocation of resources.

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