Reps to probe $7bn unpaid foreign reserve fund

The House of Representatives has ordered investigation into the reported non-repayment of $7 billion from Nigeria’s foreign reserves, said to have been disbursed to 14 Global Asset Managers, and 14 Nigerian banks by the Central Bank of Nigeria (CBN) since 2006.

The House on Thursday, mandated its Committee on Banking and Currency to investigate the details of the disbursed funds, and the continued non-repayment of same 13 years after, as well as determine the terms and conditions of the disbursement to ascertain, if such have been complied with, as it relates to repayment and report back its findings within eight weeks.

This followed the adoption of a motion by Hon. Yunusa Ahmad, who noted that sometime in 2006, the CBN disbursed $7 billion of Nigeria’s $38.07 billion, giving names of the 14 Global Asset Managers and their Nigerian counter parts as: Black Rock and Union Bank Nigeria Plc, J.P. Morgan Chase and Zenith Bank Plc; H.S.B.C. and First Bank of Nigeria Plc; BNP Paribas and Intercontinental Bank Plc.

Others are USB and United Bank for Africa; Credit Suisse and IBTC Chartered Bank Plc; Morgan Stanley and GTB Plc; Fortis and Bank PHB Plc; Cominvest and Oceanic Bank Plc; ING and Ecobank Plc; Bank of the New York and Stanbic Bank Plc; and Crown Agents and Diamond Bank Plc;

According to the lawmaker, the Central Bank of Nigeria gave each Asset Manager and its Nigerian Bank Counterpart $500 Million from the nation’s foreign reserves to manage;

He said of the 14 Nigerian Banks that received the said funds about six of them namely; Oceanic Bank, Intercontinental Bank, Bank PHB, FIN Bank, AfriBank, and very recently Diamond Bank Plc were merged or acquired by other Banks under the oversight of the Central Bank of Nigeria (CBN)

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