The Central Bank of Nigeria’s (CBN) ambitious Intervention Funds Programme, aimed at bolstering various sectors with an estimated N10.3 trillion, has revealed a mixed picture of success and setbacks. According to reports obtained exclusively by Ratecaptain, approximately N193 billion of the total loans disbursed under the program have been declared lost, with another N418.9 billion deemed doubtful.
The comprehensive breakdown of the intervention funds, last updated in September 2023 by CBN officials, sheds light on the repayment status and overall performance of the massive financial initiative. Out of the N10.3 trillion disbursed, N4.4 trillion has been successfully repaid, while roughly N5.8 trillion remains outstanding. Notably, some loans are tenured, meaning their repayments are due when the principal matures.
However, concerns arise as only N969.8 billion of the outstanding amount is past due, with some loans having repayment tenures extending beyond 2023. This situation reflects a repayment-to-amounts-due ratio of 75.8%, suggesting a significant portion of the loans is yet to be recouped.
The CBN’s report further delineates the status of the loans, indicating that N289 billion is performing, N67.9 billion is substandard, and N418.9 billion is in the doubtful category. Alarmingly, N193.9 billion of the loans have been declared lost, pointing to substantial financial losses within the program.
The apex bank’s Governor, Yemi Cardoso, has been vocal in his criticism of the intervention funds executed during the tenure of Emefiele, alleging inadequacies in their implementation. However, insiders within the bank refute some of these claims, suggesting that certain projects funded by the loans, such as the Blue and Redline Rail projects and the distribution of fertilizers to farmers, have contributed to the country’s development agenda.
Despite the criticisms and challenges, sources within the CBN stress the vital role of the intervention funds in sustaining economic growth. They argue that without these funds, the tepid economic expansion currently observed could have been even more dismal.
However, these sources prefer to remain anonymous, fearing potential repercussions for expressing divergent views on the matter. Another source highlighted that while some funds may appear to have been “printed,” the majority were sourced from the Cash Reserve Ratio (CRR) deposits of banks. The CBN funded over 72% of the N10.3 trillion loans, underscoring the central bank’s significant role in driving economic initiatives.
As the debate continues within financial circles, the revelations from the CBN’s intervention funds highlight both the potential and pitfalls of large-scale financial programs aimed at stimulating economic growth and development in Nigeria.
