The House of Representatives at its plenary session on Thursday 7th November 2019 mandated its Committee on Banking and Currency to investigate details surrounding a $7 billion fund that was disbursed by the Central Bank of Nigeria (CBN) to some Global Asset Managers and Nigerian Banks since 2006. As part of its terms of reference, the Committee is to determine if the terms and conditions that led to the disbursement have been complied with especially in relation to its repayment.

Presenting the motion, Hon. Abubakar Yunusa Ahmad (APC: Gombe) stated that sometime in 2006, the CBN disbursed $7Billion out of Nigeria’s $38.07 Billion foreign reserves, to some Global Asset Managers and Nigerian Banks who were their local partners to manage. He stated that the Global Asset Managers and their Nigerian counter parts were 14, in number and listed them to include the following:

1. Black Rock and Union Bank Nigeria Plc;
2. J.P. Morgan Chase and Zenith Bank Plc;
3. H.S.B.C. and First Bank of Nigeria Plc;
4. BNP Paribas and Intercontinental Bank Plc;
5. USB and United Bank for Africa;
6. Credit Suisse and IBTC Chartered Bank Plc;
7. Morgan Stanley and GTB Plc;
8. Fortis and Bank PHB Plc;
9. Cominvest and Oceanic Bank Plc;
10. ING and Ecobank Plc;
11. Bank of New York and Stanbic Bank Plc; and
12. Crown Agents and Diamond Bank Plc.

He however mentioned that while the CBN had given each Asset Manager and its Nigerian Bank Counterpart, $500 Million each from the country’s foreign reserves to manage, a significant number of the Nigerian banks had become merged/acquired by other Banks under CBN’s oversight over the years.  For instance, of the Nigerian Banks that received the said funds, six of them namely; Oceanic Bank, Intercontinental Bank, Bank PHB, FIN Bank, AfriBank, and Diamond Bank Plc had become merged or acquired. He stated that while it was a general principle to inherit assets and liabilities when acquiring another bank or merging, he was worried that, Nigeria’s hard earned $7 Billion worth of foreign reserves may be put to waste where there was no action to ensure repayment by erring banks.

The Committee has been given a period of eight (8) weeks to report its findings for further legislative action.