Reps to investigate non-payment of $7bn by asset managers

senate plenary
Senate Plenary

The House of Representatives has resolved to investigate the failure to repay $7 billion disbursed by the Central Bank of Nigeria (CBN) to 14 global asset managers and their Nigerian counterparts.

This is sequel to a unanimous adoption of a motion by Abubakar Ahmad (APC-Gombe) at the plenary on Thursday.

Moving the motion earlier, Mr Ahmad said that sometime in 2006, the CBN disbursed seven billion dollars to 14 global asset managers and 14 Nigerian banks that were local partners to manage.

He said that the asset managers and their Nigerian counterparts included Black Rock and Union Bank Nigeria Plc, J.P. Morgan Chase and Zenith Bank Plc.

Others are First Bank of Nigeria Plc; BNP Paribas and Intercontinental Bank Plc; USB and United Bank for Africa; Credit Suisse and IBTC Chartered Bank Plc; Morgan Stanley and GTB Plc; Fortis and Bank PHB Plc among others.

READ ALSO: What Nigerian govt is doing to reverse British court’s $9 billion judgement – CBN Governor

He said that CBN gave each asset manager and its Nigerian bank counterpart 500 million dollars from the nation’s foreign reserves to manage.

The lawmaker said that six of the 14 Nigerian banks that received the said funds had either merged or been acquired by other banks under the oversight of the CBN.

He said that the six banks are Oceanic Bank, Intercontinental Bank, Bank PHB, FIN Bank, AfriBank and Diamond Bank Plc.

Mr Ahmad said the asset and liabilities of the six merged/acquired banks had been legally acquired as part of the legacies of the defunct banks.

He said after 13 years, Nigeria’s hard-earned seven billion dollars foreign reserves has not been repaid to the CBN and there is no action put in place to ensure repayment of the funds.

In his ruling, the Deputy Speaker of the House, Ahmed Wase, mandated the Committee on Banking and Currency to investigate the details of the disbursed funds by the CBN.

The committee is to determine the terms and conditions of the disbursement and find out if they have been complied with and report back within eight weeks for further legislative action.

(NAN)

Advertisement

PT Mag Campaign AD

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...



NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.