CBN’s N10 Trillion Intervention: N193 Billion Loans Deemed Lost

With an estimated N10.3 trillion in funding, the Central Bank of Nigeria’s Intervention Funds Programme has a 75.8% repayment record.

The study also claims that N418.9 billion of the total loans disbursed are still questionable and that N193 billion of the total has been declared lost.

A report that breaks down the bank’s intervention money over time provides this information.

The records, which bank officials last updated in September 2023, were exclusively obtained by The News Chronicles.

Out of the N10.3 trillion in intervention money, the report states that N4.4 trillion had been returned, leaving over N5.8 trillion unpaid. Certain loans are tenured, which means that they become due only when the principal is repaid.

Only N969.8 billion of the total debt was past due, though, because certain loans had payback terms that extended until 2023. This was the basis for the report’s assertion that 75.8% of sums owed were repaid.

Additionally, according to the Apex Bank study, N418.9 billion of the loans are questionable, N67.9 billion are substandard, and N289 billion of the loans are performing. Additionally, the data shows that N193.9 billion of the loans are not repaid. 

Yemi Cardoso, the governor of the Apex bank, has frequently questioned the intervention funds used under Emefiele’s direction, alleging that the bank was unable to carry out the interventions in a suitable manner.

Sources within the bank, however, also imply that some of the Governor of the apex bank’s statements were made without taking the effects of certain programmes into account.

The News Chronicles was notified by an official that certain initiatives being promoted by the Tinubu administration as part of its renewed hope platform were sponsored by some of the loans.

The Blue and Redline Rail projects, recently supplied fertilisers to farmers, and a portion of the food that was taken out of the Apex Bank’s strategic reserve were all mentioned by the officials. 

They added that if it weren’t for the intervention money, the current slow rate of economic growth may have been worse.

All of the sources begged to remain anonymous because they might suffer consequences for expressing their separate thoughts on the subject.

While some of the monies may have appeared to be “printed,” the majority came from bank CRR deposits, according to another source. More than 72% of the N10.3 trillion loans were financed by the top bank.