The House of Representatives has commenced an investigation into the management and utilisation of over ₦12 trillion disbursed to Nigeria’s Development Finance Institutions over the past seven years.
The move followed the inauguration on Wednesday of an ad hoc committee mandated to review the operations, funding, and performance of the DFIs amid growing public concerns over their transparency and effectiveness.
The Chairman of the committee, Chidi Obetta, said the probe would take a comprehensive look at how funds allocated to DFIs—established to drive industrialisation, agriculture, small and medium enterprises, and infrastructure development—have been utilised.
He said preliminary findings indicated that capital injections, budgetary allocations, bond issuances, concessional loans, and donor funds channelled to DFIs in recent years have exceeded ₦12 trillion.
Obetta noted that the figure remains subject to verification, as the committee would demand audited financial records and detailed expenditure statements from each institution.
‘The investigation responds to the growing public demand for transparency, accountability, and measurable impact from institutions designed to fill financing gaps not served by commercial banks’, Obetta said.
He identified the key DFIs under scrutiny to include the Bank of Industry, Bank of Agriculture, Nigeria Export-Import Bank, Infrastructure Bank, Development Bank of Nigeria, and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending.
The lawmaker stressed that recent developments have raised questions about the efficiency, accountability, and outcomes of these institutions.
According to him, the committee will assess whether the allocated funds have reached the intended beneficiaries and contributed to job creation, industrial growth, and export expansion.
He added that the investigation is ‘not punitive but reform-oriented’, aimed at strengthening the capacity, efficiency, and integrity of the DFIs.
Obetta said the committee would adopt a transparent and evidence-based approach, engaging stakeholders including DFI management teams, the Central Bank of Nigeria (CBN), the Ministry of Finance, Budget and National Planning, development partners, and beneficiaries.
‘Our goal is to ensure that Nigeria’s Development Finance Institutions operate as effective instruments for inclusive growth, poverty alleviation, and sustainable development’, Obetta stated.
Inaugurating the committee, the Speaker of the House, Tajudeen Abbas, expressed concern over the poor performance of DFIs despite the substantial public funds at their disposal.
Represented by the Deputy House Leader, Halims Abdullahi, Abbas lamented that many DFIs have had minimal impact on Nigeria’s multi-dimensional poverty index and the growth of small and medium enterprises.
He attributed their shortcomings to poor transparency, political interference, and overly cautious lending practices.
‘In a period when our economic reforms are focused on inclusive growth, the inadequacies of these institutions are unacceptable.
‘The House will no longer support budgetary allocations to any DFI unable to demonstrate accountability, responsible financial management, and tangible developmental outcomes’, Abbas said.
He cautioned that public funds must reach productive sectors and the citizens they are intended to benefit, warning against diversion or bureaucratic delays.
Representing the CBN Governor, Mr Yemi Cardoso, a Director in the apex bank, Mr Ibrahim Hassan, pledged full cooperation with the committee.
He explained that the CBN regulates and supervises DFIs to ensure adherence to prudential standards and sound financial management and would provide technical support to aid the inquiry.
Also speaking, the Managing Director of NEXIM Bank, Mr Abba Bello, described the investigation as timely and necessary, noting that DFIs must deliver measurable economic impact.
‘These institutions should serve as engines of growth—creating jobs, supporting industries, and generating foreign exchange’, Bello said, pledging NEXIM Bank’s readiness to cooperate with the House.
The ad hoc committee is expected to present its findings and recommendations to strengthen the accountability and effectiveness of DFIs and ensure that they fulfil their mandates of stimulating inclusive and sustainable national development.
