Reps threaten sanctions over BOI absence

Reps threaten sanctions over BOI absence as House panel probes development finance institutions and demands full disclosure

The House of Representatives Ad-hoc Committee investigating the operations, funding sources and performance of Development Finance Institutions on Wednesday threatened to invoke its constitutional powers to compel the appearance of the Bank of Industry after the institution failed to honour its invitation at the National Assembly Complex, Abuja.

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The warning followed what lawmakers described as repeated communications and formal invitations to the bank, which neither appeared nor transmitted the requested documents at the committee’s maiden sitting.

The investigative hearing stems from a recent resolution of the House to probe development finance institutions across the country amid mounting concerns over the management of intervention funds, loan disbursements and the measurable impact of such facilities on the real sector.

Lawmakers constituted the ad-hoc panel to scrutinise how public resources channelled through DFIs have been utilised, identify beneficiaries and determine whether the interventions have achieved their stated objectives.

At Wednesday’s session, the National Agricultural Development Fund, the Nigerian Credit Guarantee Company and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending made presentations based on earlier submissions.

During proceedings, the committee directed the National Agricultural Development Fund to provide additional documentation, particularly comprehensive details of loans and interventions extended to farmers affected by the ginger blight disease outbreak, which significantly disrupted production in parts of the country.

Members also sought clarity on the scale of financial support extended to DFIs and the outcomes recorded from such interventions.

The Nigerian Credit Guarantee Company was instructed to return with more detailed documentation outlining its statutory mandate, governance structure, operational model, funding sources and emerging programmes.

Similarly, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending was asked to make fresh and more detailed submissions covering its interventions within the period under review, including beneficiary data, funding volumes and performance metrics.

In sharp contrast, the Bank of Industry failed to submit the required documentation or send representatives to the hearing, prompting firm reactions from committee members.

Following a motion moved by Mr Femi Bamisile, the panel resolved to issue a directive compelling the bank to urgently submit the requested reports and appear at the next sitting.

The committee warned that continued non-compliance could trigger the issuance of a warrant of arrest to enforce attendance, in line with the constitutional oversight powers of the House.

In his opening remarks, Chairman of the Committee, Mark Obetta, said the investigation was designed to strengthen transparency, accountability and efficiency in the management of public intervention funds.

Mark Obetta said the committee’s mandate was to examine how intervention funds and other public resources allocated to DFIs had been utilised, identify beneficiaries and assess the measurable impact of such interventions on Nigeria’s economic development.

Mark Obetta stressed that development finance institutions play a critical role in supporting strategic sectors of the economy, facilitating access to finance and promoting inclusive growth.

Where public funds are involved, Mark Obetta said, there must be transparency, accountability and measurable outcomes.

The committee would carefully examine the flow of funds, processes of disbursement, performance of funded projects and recovery of loans where applicable.

Mark Obetta added that the goal of the committee was not adversarial but to ensure that public resources deployed for development purposes deliver tangible impact for the Nigerian people.

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The Central Bank of Nigeria and other relevant development finance institutions are expected to appear before the committee at its next adjourned sitting as the probe gathers momentum.

Quadri Olaitan