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Uneven distribution of N500 billion credit facilities debate throws Senate into rowdy session

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***As Akpabio steps down motion

The 10th Senate recorded its first rowdy session on Wednesday following the rejection of a motion to debate alleged uneven distribution of N500 billion credit facilities to Micro, Small and Medium Scale Enterprises (MSMEs) across the country by Senate President Godswill Akpabio

Upon the commencement of plenary session, Chief Whip of the Senate, Mohammed Ali Ndume had drawn the attention of the Senate to a motion he sponsored on the same issue of imbalance in the distribution of the money adding that the outcome of that motion was not concluded before the end of the tenure of the 9th Senate.

He sought the permission of the Senate president to move the motion for debate afresh.

Before Akpabio could speak, Senator Solomon Adeola, rose in disagreement with Ndume’s position that the last Senate had not concluded the matter.
Adeola argued that from his discussion with the chairman of the ad hoc committee set up to investigate the matter, a report was done on the motion and was sent to the Presidency for implementation.

Apparently piqued by Adeola’s submissions, Senator Aliu Ahmed Wadada (SDP, Nasarawa state), rose angrily shouting point of order! Point of order!!

When recognised Wadada, said he is seriously opposed to the imbalance experienced in the distribution of the money adding that his senatorial District, his state and the entire North was grossly cheated.

Wadada became more furious when the Senate president attempted to rule him out of order on the grounds of citing improper order.

At the point of ruling on the matter, Ndume again rose to his feet and insisted that it is morally wrong that the whole North was given only 11% while only Lagos State got 47% of the loan. He added that his state, Borno State got only 1%.

Akpabio interrupted him stating that the motion had to be stepped down for more consultation.

“Let me make it clear that the fact that the motion is stepped down does not mean it cannot be reintroduced” Akpabio explained.

The motion which had already been listed in the Senate’s Order Paper for debate and sponsored by Ndume, Senator Bomai Ibrahim Mohammed (Yobe South), and Ya’u Sahabi (APC, Zamfara North) was tagged “Un-even Disbursement of Half a Trillion Naira loan to the six geo-political zones by the Development Bank of Nigeria”.

It pointed out that the Bank’s Annual Integrated Statutory Report 2021 obtained on 13 July, 2022, from the organization’s website showed that the bank disbursed a loan worth Four Hundred and Eighty Three Billion Naira (N483, 000, 000, 000) out of which only 11% went to the 19 states of Northern Nigeria, while 47% went to Lagos State alone”

” The Senate should also be aware that the 11% of the loan that went to the North totals about Fifty Three Billion, One Hundred and Thirty Million Naira (N53, 130, 000, 000) while the 47 percent that went to Lagos State alone totals Two Hundred and Twenty Seven Billion and Ten Million Naira (N227, 010, 000, 000) only: Observes that the loans were given out to the Six Geopolitical Zones and the data showed that the South-West accessed the lion’s share 57% of the total loan, which is estimated to be around Two Hundred and Seventy Four Billion, Seven Hundred and Forty Million Naira (N274, 740,000,000) only”

He said it is worrisome that “the South-South Zone accessed 17%, which is roughly Eighty One Billion, Nine Hundred and Forty Million Naira (81, 940, 000, 000) only; the Federal Capital Territory (FCT) and the North-Central Zone accessed 11%, which is Fifty Three Billion and Twenty Million Naira (N53, 020, 000, 000) only, the South- East Zone accessed a paltry 9%, which is roughly Forty Three Billion, Three Hundred and Eighty Million Naira (N43, 380, 000, 000) only while the North-West which has 5% accessed Twenty Four Billion, One Hundred Million Naira (N24, 100, 000, 000) only and the North-East accessed only 1%, the least share of the total loan at roughly Four Billion, Eight Hundred and Twenty Million Naira (N4, 820, 000, 000) only”.

He noted that “the Development Bank of Nigeria exists to alleviate financing constraints being faced by Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria through providing finance, partial credit guarantees, and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis”

According to the motion, “the top five sectors considered for the loan are oil and gas (42.0%), Manufacturing (16.0%) agriculture, forestry and fishery (7.2%), trade and commerce (6.3%), and transportation and storage (3.5%)”

When the issue was first raised last year, the then minister of Finance, Zainab Ahmed, said the federal government would review the criteria currently being used by development banks in the country to disburse loans to medium and small scale enterprises (MSMEs) in order to ensure geographical spread.

The Minister stated this when she appeared before the Senate ad-hoc committee set up to investigate the alleged uneven disbursement of the N500 billion loan.

Ahmed however, cautioned that such review would not be too flexible to ensure the sustainability of the development banks.
The minister said, “I have been given copies of reports already submitted to the committee by the development bank.

“The criteria to access funds from the development banks are set by the supervising ministry. The Development Bank of Nigeria was set up to enhance the development of the MSMEs across the country but it doesn’t lend directly to the beneficiary businesses. Instead it lends to them through microfinance banks.
“The MFBs also provide criteria for the lenders and do credit analysis. They send their reports to the DBN which would collate the report and approve for disbursement.”

“The criteria set by the DBN was reviewed by the regulator and approved by CBN. The Bank of Industry was set up to also stay healthy as a bank. It has done very well in terms of loans repayment. it is the only financial development institution that is giving dividends to the federal government.” She had said.

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Legislature

President Tinubu urges Senate to approve ₦1.767trn External Loan

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Bola Ahmed Tinubu

President Bola Ahmed Tinubu has formally requested the National Assembly’s approval for a $2.209 billion (₦1.767 trillion) external borrowing plan to finance part of the ₦9.17 trillion fiscal deficit in the 2024 budget. The loan, included in the 2024 Appropriation Act, is critical to the government’s broader strategy for economic recovery and growth.
In a letter to Senate President Godswill Akpabio, President Tinubu noted that the borrowing aligns with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003. He also indicated that the Federal Executive Council (FEC) had approved the plan.
The President explained that the funds would be sourced through Eurobonds or similar external financial instruments. A detailed summary of the loan’s terms and conditions accompanied the letter to guide legislative scrutiny.
“This borrowing is necessary to address the budget deficit and fulfill our fiscal strategy for 2024. Swift approval will enable us to move forward with mobilizing these funds,” the President stated, emphasizing the urgency of the request.
Senate President Akpabio referred the matter to the Committee on Local and Foreign Deb

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Legislature

Senator Natasha Transforms Kogi Central Schools with 5,000 Digital Learning Devices

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By Isah Bala

Access to quality education is a cornerstone of societal progress, and Senator Natasha Akpoti-Uduaghan is embodying this vision by bringing transformative educational tools to Kogi Central. In a groundbreaking initiative, the senator recently provided 5,000 digital learning devices to public primary and secondary schools in her district, aiming to bridge the digital divide and set a new educational standard.

The devices, unveiled at Abdul Aziz Attah Memorial College (AAAMCO), are preloaded with the Nigerian curriculum from UBEC and internationally acclaimed educational resources, including Khan Academy and Discovery Kids. Through this initiative, students will experience interactive learning, enabling them to explore subjects in depth, enhance digital literacy, and engage with complex topics in a hands-on way.

This project is just the beginning of Senator Natasha’s ambitious plan to make “smart schools” the norm in Kogi Central. She envisions a future where every child in her district has equal access to digital learning, stating, “My dream is to equip all public primary and secondary schools in Kogi Central with digital learning devices before the end of my tenure in 2027.”

Beyond device distribution, the senator’s initiative includes UBEC-led teacher training to ensure educators are equipped to integrate these tools into their classrooms effectively.
With this dual approach of student and teacher empowerment, Senator Natasha is laying a foundation that will support digital literacy and skill development for years to come.

Senator Natasha’s commitment to educational advancement represents a significant step forward for Kogi Central, ensuring that young students have access to the tools they need to succeed in an increasingly digital world. This initiative marks her dedication to the constituency that entrusted her with this mandate.

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Legislature

Newly Appointed Ministers Thank Senator Basheer Lado for Supportive Screening Process

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Bianca Odumegwu-Ojukwu

Seven newly appointed ministers-designate have expressed their deep appreciation to Senator Basheer Lado, the Special Adviser to President Bola Tinubu on Senate Matters, for his instrumental role in ensuring a smooth Senate screening and confirmation process.

During a visit to Lado’s office, Ambassador Bianca Odumegwu-Ojukwu, the designated Minister of State for Foreign Affairs, spoke on behalf of her colleagues. She praised Lado’s guidance and support throughout the process, noting his efforts to make them comfortable at every stage.

“We can’t thank you enough for navigating us through this process and making everything feel manageable,” Odumegwu-Ojukwu remarked. She shared her initial anxiety, explaining how Lado’s personal touch—regular communication, detailed explanations, and readiness to help at any hour—helped them feel reassured and prepared.

The six other ministers-designate, who joined her in expressing gratitude, include Dr. Nentawe Yilwatda (Humanitarian Affairs and Poverty Reduction), Muhammadu Maigari Dingyadi (Labour and Employment), Dr. Jumoke Oduwole (Industry, Trade, and Development), Idi Muktar Maiha (Livestock Development), Rt. Hon. Yusuf Abdullahi Ata (Housing and Urban Development), and Dr. Suwaiba Said Ahmad (Minister of State for Education). Each expressed their thanks for Lado’s dedication to their success.

Odumegwu-Ojukwu conveyed the group’s appreciation, emphasizing Lado’s patience and availability: “Your commitment, your guidance, and even the late hours you kept to assist us—these made a significant impact on each of us. We are truly grateful for your support.”

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