Published On: Fri, Nov 8th, 2019

Reps probe $7bn foreign reserves fund disbursed to 14 banks

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By Christiana Ekpa

The House of Representatives yesterday mandated it’s Committee on Banking and Currency to investigate the non-repayment of $7 billion from Nigeria’s foreign reserves, allegedly disbursed to 14 Global Asset Managers, and 14 Nigerian banks by the Central Bank of Nigeria (CBN) since 2006.
The Committee is also expected to investigate the details of the disbursed funds, and the continued non-repayment of same 13 years after, as well as determine the terms and conditions of the disbursement to ascertain, if such have been complied with, as it relates to repayment and report back its findings within eight weeks.
The names of the 14 Global Asset Managers and their Nigerian counterparts are: Black Rock and Union Bank Nigeria Plc, J.P. Morgan Chase and Zenith Bank Plc; H.S.B.C. and First Bank of Nigeria Plc; BNP Paribas and Intercontinental Bank Plc.
Others are USB and United Bank for Africa; Credit Suisse and IBTC Chartered Bank Plc; Morgan Stanley and GTB Plc; Fortis and Bank PHB Plc; Cominvest and Oceanic Bank Plc; ING and Ecobank Plc; Bank of the New York and Stanbic Bank Plc; and Crown Agents and Diamond Bank Plc.
These followed the adoption of a motion on the “Need to Investigate the Non-Repayment of $7 Billion USD from Nigeria’s Foreign Reserves Disbursed to 14 Global Asset Managers and 14 Nigerian Banks by the Central Bank of Nigeria Since 2006.”
moved by Hon. Yunusa Ahmad, who disclosed that sometime in 2006, the CBN disbursed $7 billion of Nigeria’s $38.07 billion to the banks.
According to the lawmaker, the Central Bank of Nigeria gave each Asset Manager and its Nigerian Bank Counterpart $500 million from the nation’s foreign reserves to manage.
He said of 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 or acquired by other banks under the oversight of the Central Bank of Nigeria (CBN).
“Notes that sometime in 2006, the Central Bank of Nigeria (CBN) disbursed $7Billion USD of Nigeria’s $38.07 Billion USD foreign reserves to 14 Global Asset Managers and their 14 Nigerian Banks local partners to manage.
“Also notes that the 14 Global Asset Managers and their Nigerian counterparts are: Black Rock and Union Bank Nigeria Plc, J.P. Morgan Chase and Zenith Bank Plc; H.S.B.C. and 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; Cominvest and Oceanic Bank Plc; ING and Ecobank Plc; Bank of the New York and Stanbic Bank Plc; and Crown Agents and Diamond Bank Plc;
“Aware that the Central Bank of Nigeria (CBN) gave each Asset Manager and its Nigerian Bank counterpart $500 million USD from the nation’s foreign reserves to manage.
“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.
“Worried that after13 years, Nigeria’s hard earned $7 Billion USD foreign reserves has not been repaid to the Central Bank of Nigeria and there is no action put in place to ensure repayment of the funds” he said.
The motion was adopted by the House, presided over by the Deputy Speaker of the House Idris Wase.

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