Reps Commence Investigation of $7bn Withdrawn from Foreign Reserves by CBN

• Reps Commence Investigation of $7bn Withdrawn from Foreign Reserves by CBN

The House of Representatives on Thursday announced it has commenced investigation of the yet to be refunded $7 billion that was withdrawn by the Central Bank of Nigeria (CBN) from the nation’s foreign reserves in 2006 to pay banks and asset managers.

The Committee on Banking and Currency has been mandated by the House to investigate “the details of the disbursed funds by the CBN to the banks and the continued non-repayment of same 13 years after disbursement.”

Also, the committee will determine “the terms and conditions of the disbursement to ascertain if the terms and conditions have been complied with as it relates to repayment of the fund, and report back within eight weeks for further legislative action.”

The investigation was in response to the unanimous adoption of a motion titled ‘Need to Investigate the Non-Repayment of $7bn from Nigeria’s Foreign Reserves Disbursed to 14 Global Asset Managers and 14 Nigerian Banks by the Central Bank of Nigeria Since 2006.’

Mr Abubakar Ahmad, who moved the motion, said in 2006, the Central Bank of Nigeria withdrawn $7 billion from the nation’s N38.07 billion foreign reserves to pay 14 global asset managers and their 14 banks, local partners, to manage.

Ahmad said, “The House is aware that the CBN gave each asset manager and its Nigerian bank counterpart $500m from the nation’s foreign reserves to manage. The 14 Nigerian banks that received the said funds, about six of them, namely Oceanic Bank, Intercontinental Bank, Bank PHB, FIN Bank, AfriBank, and very recently Diamond Bank Plc were merged/acquired by other banks under the oversight of the CBN.

“The House is again aware that the assets and liabilities of the six merged/acquired banks have been legally acquired as part of the legacies of the defunct banks. After 13 years, Nigeria’s hard-earned $7bn foreign reserve has not been repaid to the CBN and there is no action put in place to ensure repayment of the funds.”