₦193BN LOST, ₦418.9BN DOUBTFUL IN N10.3TRN INTERVENTION LOANS

A recent report by the Central Bank of Nigeria (CBN) has shed light on the concerning state of intervention loans disbursed by the bank, revealing that, N193 billion has been declared lost, with another N418.9 billion categorized as doubtful. 

The report, updated as of September 2023, provides a detailed breakdown of the bank's intervention funds over the years.

Doubtful l loans, as defined in the report, are those for which full repayment is questionable and uncertain, ranging from a complete loss to uncertain loss unless corrective actions are taken. 

Out of the total N10.3 trillion disbursed in intervention funds, approximately N4.4 trillion has been repaid, leaving around N5.8 trillion outstanding.

The report highlights that, some loans are tenured, meaning they are due only when principal repayments mature. 

However, it notes that, only N969.8 billion of the outstanding amount was past due, with some loans extending repayment tenures beyond 2023. The percentage of repayments to amounts due was reported at 75.8%.

Further breakdowns in the report indicate that N289 billion of the loans are performing, N67.9 billion are substandard, and N418.9 billion are deemed doubtful, with N193.9 billion declared lost.

The handling of intervention funds under the leadership of CBN Governor Godwin Emefiele has faced criticism from within the apex bank itself. Governor Yemi Cardoso has voiced concerns about the appropriateness of the bank's implementation of interventions, suggesting that improvements are needed.

The revelation of substantial losses and doubtful loans underscores the importance of effective management and oversight in disbursing intervention funds