House Investigates Development Finance Institutions’ Funding, Performance

The House of Representatives Ad-hoc Committee investigating the operations and funding of Development Finance Institutions, DFIs, has threatened to invoke its constitutional powers to compel the appearance of the Bank of Industry after the bank failed to honor an invitation to appear before it.

The warning was issued after the bank neither attended the committee’s inaugural investigative hearing at the National Assembly nor submitted documents previously requested by lawmakers.

At the hearing, the National Agricultural Development Fund, the Nigerian Credit Guarantee Company and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending appeared and made presentations based on earlier submissions.

Lawmakers, led by Committee Chairman Mark Chidi Obetta, questioned the institutions on their programs, funding structures, intervention strategies and performance records from 2018 to date.

According to Obetta the probe forms part of the House’s oversight responsibility to assess the implementation and measurable impact of development finance interventions on key sectors of the economy.

The committee directed the National Agricultural Development Fund to provide additional documentation, particularly details of loans and interventions extended to farmers affected by the ginger blight outbreak that disrupted production in parts of the country.

The Nigerian Credit Guarantee Company, which told lawmakers it recently commenced operations, was asked to submit detailed documentation outlining its mandate, governance framework, funding sources and operational model.
Similarly, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending was directed to provide updated submissions covering beneficiary data, funding volumes and performance metrics within the review period.

Following a motion by Femi Bamisile, the committee resolved to compel the Bank of Industry to submit the required documents and appear at the next hearing.

Lawmakers warned that continued non-compliance could result in the issuance of a warrant of arrest in line with the House’s constitutional oversight powers.

In his opening remarks, Obetta said the investigation aims to strengthen transparency, accountability and efficiency in the management of public intervention funds.

“Where public funds are involved, there must be transparency, accountability and measurable outcomes,” he said.

The Central Bank of Nigeria and other relevant institutions are expected to appear at the next hearing as the investigation continues.

Oduyemi Odumade, Edited By Grace Namiji