Legislature
Uneven distribution of N500 billion credit facilities debate throws Senate into rowdy session
***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.
***Allocates N23.96 Trillion for Capital Projects, N14.31 Trillion for Debt Servicing
The Nigerian Senate along with the House of Represebtatives have passed the 2025 Appropriation Bill, approving a record-breaking budget of N54,990,165,355,396 to finance government activities in the coming fiscal year.
The budget, titled A Bill for an Act to Authorise the Issue from the Consolidated Revenue Fund of the Federation, was approved after deliberations on its allocations and implications for economic growth, debt management, and infrastructure development.
The chairman of the National Assemble Godswill Akpabio who is also the President of the Senate gave the beakdown of the 2025 Budget to show that Statutory Transfers: ₦3.65 trillion, debt Servicing: ₦14.32 trillion, Recurrent (Non-Debt) Expenditure: ₦13.06 trillion and
Capital Expenditure: ₦23.96 trillion
The largest chunk of the budget, ₦23.96 trillion, was allocated for capital expenditure, aimed at infrastructure development, healthcare, education, and security.
This signals the government’s commitment to addressing Nigeria’s infrastructural deficit.
However, the ₦14.32 trillion earmarked for debt servicing highlights the country’s rising debt burden, sparking concerns over long-term financial sustainability.
With the National Assembly approval, the budget now awaits President Bola Tinubu’s assent, after which implementation will begin. Analysts predict a challenging fiscal year, balancing economic growth with prudent spending and debt repayment.
However, time will tell whether the historic budget will deliver on its promises, or economic realities force adjustments down the line?
***Says addittional fund is to Prioritize Infrastructure, Health, Economic Growth
The chairman of the senate committee on Appropriation Senator Adeola Solomon Olamilekan has explained the approval of the 2025 Appropriation Bill by the national Assembly which it increased from N49.7 trillion to N54.99 trillion—the highest in the nation’s history.
The adjustment followed legislative reviews that uncovered additional revenues from key government agencies.
While explaining the Budget Expansion and Revenue Sources Olamilekan indicated that the additional N4.99 trillion was sourced from Nigeria Customs Service, Federal Inland Revenue Service (FIRS) and Government-Owned Enterprises (GOEs)
These he said led to an increase in funding for critical sectors, including N1.5 trillion for Bank of Agriculture, N500 billion for Bank of Industry, 1 trillion for Ministry of Solid Minerals, N1.5 trillion for Renewable Infrastructure Fund, N300 billion – Road construction and N400 billion for Rail transport.
Others are N380 billion of Water resources, irrigation, and dam projects, N250 billion for Military barracks renovation N120 billion for New military aviation projects, N50 billion for Border security agencies
Following the suspension of U.S. health aid, which previously provided funding for HIV, tuberculosis, malaria, and polio treatments, President Tinubu approved $200 million (N300 billion) to ensure continued medical supplies and healthcare support for affected patients.
On the major Boost for Infrastructure Development he said a record N23.7 trillion has been allocated for capital projects, marking a significant leap in infrastructure investment.
He listed the areas the funds will focus on to include Roads and railways,nEducation and healthcare improvements and Other critical public infrastructure
To prevent delays in budget implementation, the 2026 budget process will begin in July 2025, with the Medium-Term Expenditure Framework (MTEF) submitted early and the Appropriation Bill expected by October 2025.
Concerns over inadequate rail infrastructure funding in the South East were raised, but legislative leaders clarified that rail projects are primarily funded through public-private partnerships (PPPs).
According to him, the 2025 budget focuses on light rail development in Lagos, Ogun, Kaduna, and Kano, while further discussions on South East projects are ongoing.
He explained that to maintain Economic Stability the budget parameters remain unchanged, with key revenue sources including FIRS increasing its revenue target to N25.1 trillion, Nigeria Customs Service boosting revenue collection through stricter enforcement and Independent revenue agencies contributing 100% of their generated funds to the federal government
The House of Representatives has directed its Joint Committee on Communications and Interior to investigate reports of unauthorized National Identification Number (NIN) linkages by telecom service providers across Nigeria.
The decision followed the unanimous adoption of a motion jointly sponsored by Hon. Patrick Umoh (APC, Akwa Ibom) and Hon. Julius Ihonvbere (APC, Edo). The House also instructed the Nigerian Communications Commission (NCC) to probe the allegations and sanction any telecom operator found guilty of violating privacy laws.
Additionally, the National Identity Management Commission (NIMC) has been asked to clarify whether telecom providers were authorized to link NINs to subscriber lines and if such actions comply with existing regulations.
Hon. Umoh raised concerns about recent reports indicating that telecom companies have linked NINs to subscribers’ SIM cards without their consent. He warned that this unauthorized linkage exposes Nigerians to criminal activities, such as identity theft, financial fraud, and other cybercrimes.
“This action is a clear violation of the Nigeria Data Protection Act 2023 and the Nigeria Data Protection Regulation (NDPR) 2019, which guarantee the right to privacy and the protection of personal data,” Umoh stated.
He further emphasized that while the NIN system was introduced to enhance national security and streamline identification processes, unauthorized linkages undermine public trust and jeopardize citizens’ safety.
“Aware that innocent citizens have been wrongly implicated in crimes, suffered reputational damage, harassment, and legal challenges for offenses they know nothing about, it is imperative that we address this issue immediately,” Umoh added.
The House has mandated the probe committee to submit its findings within four weeks, as lawmakers seek to protect Nigerians from potential data breaches and uphold the integrity of national security protocols.
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