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Senate probes uneven disbursement of N500bn loans by DBN

By Abdulateef Bamgbose
Senate on Wednesday set up an adhoc committee to carry out investigation into the alleged uneven disbursement of half a trillion naira loan to the six geo-political zones by the Development Bank of Nigeria, DBN.
The upper legislative chamber, in its resolutions on a motion to that effect by Senator Ali Ndume (APC Borno South) and co-sponsored by Senator Ibrahim Bomai (APC Yobe South) on Wednesday, specifically urged the bank to ensure equitable disbursement of the loan to all the zones and also expand its facilities beyond the sectors already captured.
The top five sectors considered for the loan are oil and gas (42.0%), manufacturing (16.0%), agriculture, forestry and fishery (7.2%), trade and commerce (6.3%), and transportation and storage (3.5%).
Deputy President of the Senate, Senator Ovie Omo-Agege, who presided over the plenary, named the chairman, Senate Committee on Banks, Insurance and other financial institutions, Senator Sani Musa as the chairman of the adhoc committee while Senators Ibrahim Danbaba (North West); Ayo Akinyelure (South West); Mathew Urhoghide (South South); Ali Ndume (North East); Uche Ekwunife (South East) and Sadiq Umar from the North Central as members.
The committee was given two weeks to do its findings and report back to the plenary.
Presenting the motion, Senator Ndume alleged a huge disparity and uneven disbursement of half a trillion naira loan to the six geo-political zones and states in the country in 2021 by the DBN.
He specifically mentioned Lagos State as the major beneficiary with 47 percent of the total loan while the entire Northern region gets 11 percent.
The lawmaker said: “The bank’s Annual Integrated Statutory Report 2021 obtained on 13th July, 2022 from the organization’s website, the bank was able to disburse a loan worth N483,000,000 only out of which only 11% went to the 19 states of Northern Nigeria while 47% went to Lagos State alone.
“The 11% of the loan that went to the North totals about N53,130,000,000 and that the 47% that went to Lagos State alone totals N227,010,000,000 only.”
Senator Ndume expressed concern that “the loans were given to the the six geo-political zones, where the data showed that the South West accessed the lion’s share with 57% of the total loan, which is estimated to be around N273,740,000,000 only.”
He was also worried that “the South South accessed 17% which is roughly N81,940,000,000 only the Federal Capital Territory, FCT and the North Central accessed 11% which was N53,020,000,000 only, South East accessed a paltry 9% which was roughly N43,380,000,000 only, the North West, which has 5% accessed N24,100,000,000 only, while the North East accessed only 1%, the least share of the total loan at roughly N43,820,000,000 only.”
According to him, the DBN exists to alleviate financing constraints faced by the Micro, Small and Medium Scale Enterprises, MSMEs in Nigeria through providing finance, partial credit guarantees, and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable.
He, however, noted that lack of awareness of the existence of the loan or even the DBN, religious belief that precludes Muslims from taking interest loans, and lack of formalization of business as most loans require that one has a registered company, corporate bank account and a good business plan have hampered the uneven disbursement.
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Dogara Celebrates Former President Ibrahim Babangida at 85, Hails His Enduring Legacy
Rt. Hon. Yakubu Dogara, former Speaker of Nigeria’s House of Representatives, has joined millions of Nigerians in celebrating the 85th birthday of former military President, General Ibrahim Badamasi Babangida (rtd), fondly known as IBB.
In a heartfelt tribute, Dogara described General Babangida as “a statesman of uncommon vision whose leadership helped shape the destiny of Nigeria.” He emphasized that Babangida’s years in power were marked by bold reforms, infrastructural expansion, and the creation of new states that gave voice and identity to millions of Nigerians.
Born on August 17, 1941, General Babangida rose through the ranks of the Nigerian Army to become Head of State in 1985. His eight-year tenure remains one of the most defining eras in Nigeria’s political and economic journey. During his administration, Babangida introduced far-reaching economic reforms, strengthened Nigeria’s federal structure through state creation, and invested in infrastructure projects that continue to serve the nation decades later.
Dogara noted that Babangida’s foresight in establishing institutions and agencies has left an enduring legacy. He highlighted the former president’s role in expanding Nigeria’s federation, ensuring equity and representation across diverse regions, and laying foundations that successive governments have built upon.
Beyond his years in office, Dogara commended Babangida’s enduring role as an elder statesman. Even in retirement at his Minna Hilltop residence, Babangida continues to provide wise counsel to successive governments and inspire younger generations with his humility, patriotism, and resilience.
He prayed for Babangida’s continued health, strength, and grace, adding that his life is a testimony of service to God and country.
As Nigerians reflect on his 85 years, Babangida’s story is not only one of military distinction and political leadership but also of enduring influence in shaping Nigeria’s path toward unity and progress. His legacy continues to resonate, reminding the nation of the importance of vision, courage, and commitment to the common good.
News
Group Threatens Legal Action Against Akutah Over Alleged Breach of Presidential Directive
An advocacy group, the Centre for Democracy (CDD), has given the Executive Secretary of the Nigerian Shippers Council, Pius Akutah, five days to explain why he allegedly failed to resign from his position after obtaining the All Progressives Congress (APC) governorship nomination form.
In a statement signed by its Director of Operations, Barrister Jude Oseni, and made available to journalists, the group alleged that Akutah ought to have resigned immediately after obtaining the nomination form.
The group said his alleged failure to resign breached a presidential directive requiring federal appointees seeking elective positions in the 2027 general elections to relinquish their appointments by March 31, 2026.
According to the CDD, failure to comply with the directive amounts to insubordination to President Bola Tinubu and raises questions about Akutah’s relationship with the office of the Secretary to the Government of the Federation and the Minister of Transportation.
The group threatened to institute legal action against Akutah if he failed to publicly clarify that the APC governorship nomination forms were purchased by another person without his knowledge.
The CDD further alleged that Section 88(3) of the Electoral Act would prevent Akutah from participating in the election if he is presented as the APC governorship candidate, claiming that his alleged failure to resign from public office made him ineligible to contest.
The group also claimed that the APC, or any other political party that fields Akutah as its governorship candidate, could face legal consequences over his alleged non-compliance with the resignation requirement.
“His failure to resign on May 31, 2026 has made him ineligible to contest for the 2027 governorship election in the All Progressives Congress and also in any other political party,” the statement said.
The CDD argued that presidential directives constitute orders or policy guidelines issued by the President to the executive branch of government, provided such directives do not conflict with the Constitution or laws enacted by the National Assembly.
It cited Section 5 of the 1999 Constitution, which vests executive powers of the Federation in the President, and Section 130(2), which provides that the President is the Head of State, Chief Executive of the Federation and Commander-in-Chief of the Armed Forces.
The group argued that these constitutional provisions empower the President to issue directives to officials under his authority, including heads of ministries, departments and agencies.
It also cited Section 171 of the Constitution in arguing that the President’s authority over the appointment and removal of certain public officers reinforces his power to issue administrative directives to officials under his control.
The CDD alleged that President Tinubu’s directive requiring political appointees seeking elective office to resign by March 31, 2026 was issued to ensure compliance with electoral guidelines and promote fairness ahead of the 2027 general elections.
The group further referenced Section 88(1) of what it described as the Electoral Act, 2026, which it said provides that a political appointee at any level shall not serve as a voting delegate or be voted for at the convention, congress or primary of a political party for the purpose of nominating candidates for an election.
On that basis, the CDD argued that any political appointee who failed to resign in accordance with the directive would be ineligible to participate in a party’s nomination process or emerge as its candidate.
The group therefore called on Akutah to clarify his status within five days, warning that failure to do so would prompt it to pursue legal action over what it described as an alleged breach of the presidential directive and electoral law.
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Energy Consultants Retract Call for Ojulari’s Removal, Say Further Investigation Found ‘High Level of Transparency’ at NNPCL
The Association of Energy Policy and Development Consultants (AEPDC) has retracted its earlier call for the removal of Bayo Ojulari, Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), saying further investigations showed that its initial position was based on incomplete and misleading information.
Dr Ibrahim Danjuma, national president of AEPDC, announced the reversal at a press conference in Kaduna on Friday, where he said the association had conducted further investigations, reviewed relevant documents and consulted industry stakeholders after issuing its initial statement.
Danjuma said the association’s subsequent findings revealed a high level of transparency in the management of NNPCL, particularly regarding the energy security expenditure and other financial obligations that had initially triggered its criticism of Ojulari.
“We have called this press conference today because we owe Nigerians an important explanation. A few days ago, the Association of Energy Policy and Development Consultants (AEPDC) issued a statement expressing serious concerns about the management of the Nigerian National Petroleum Company Limited (NNPCL), particularly the figures relating to energy security expenditure, pipeline protection and other claims contained in the company’s financial records,” he said.
“In that statement, we called for the resignation of Mr Bayo Ojulari, group chief executive officer of NNPCL, arguing that the information available to us at the time suggested a disturbing level of opacity and weak accountability in the management of the nation’s petroleum resources.
“Today, after conducting further investigations, reviewing additional documents and engaging with relevant industry stakeholders, we have come before you to formally retract that position.”
The association said its initial assessment had been influenced by “incomplete information, selective interpretations and narratives” that did not adequately reflect the circumstances surrounding the expenditure under scrutiny.
Danjuma said AEPDC subsequently examined NNPCL’s financial disclosures, the legal framework governing its energy security obligations, under-recovery mechanisms, claims against the federation and the operational circumstances behind the expenditure.
“What emerged from this exercise was substantially different from the picture initially presented to us. Our findings reveal a level of transparency in the current management of NNPCL that we believe deserves recognition rather than condemnation,” he announced.
The group said the energy security figures should not be treated as unexplained expenditure simply because they involved large sums, arguing that they must be assessed within NNPCL’s statutory responsibilities, its role as an energy supplier of last resort, petroleum pricing interventions and exchange-rate movements.
According to Danjuma, the association also found that NNPCL’s financial disclosures contained explanations that could enable the claims to be examined and independently scrutinised.
“On this basis, we believe our earlier characterisation of the NNPCL’s position as one of secrecy was unfair. We therefore apologise to the management of NNPCL, particularly Mr Bayo Ojulari, for the conclusion we reached before completing the level of investigation that this matter deserved,” he said.
He stressed that the retraction did not amount to abandoning the group’s demand for accountability.
“Our decision today is therefore not a retreat from accountability. It is accountability in practice,” Danjuma emphasised.
The consultants maintained that legislative and independent scrutiny of NNPCL’s finances should continue, but urged stakeholders to approach the issue objectively and avoid drawing conclusions from isolated figures.
AEPDC also urged NNPCL to continue publishing comprehensive financial statements and providing clear explanations for major expenditures, while calling for stronger systems for independently verifying and reporting energy security costs.
Danjuma said the association’s revised position was based on its responsibility to correct itself after discovering that its earlier assessment was not sufficiently supported by the full facts.
“We made a judgment. We investigated further. We found that the judgment was not sufficiently supported by the full facts. We are correcting it publicly,” he said.
The association subsequently withdrew its demand for Ojulari’s resignation and reaffirmed confidence in his leadership of NNPCL, while urging him and his management team to sustain transparency, accountability and efficiency in the management of Nigeria’s petroleum resources.
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