The Godswill Akpabio-led 10th Senate witnessed its first rowdy session yesterday after the Senate President rejected a motion to debate the alleged uneven distribution of N500 billion credit facilities to Micro, Small, and Medium Scale Enterprises (MSMEs) across the country by the Development Bank of Nigeria (DBN).
Senator Mohammed Ali Ndume, the Chief Whip of the Senate, brought attention to the issue at the beginning of the plenary, stating that a similar motion on the matter was not concluded before the dissolution of the ninth Senate. He sought permission from the Senate President to move the motion for fresh debate. However, Senator Solomon Adeola disagreed, stating that a report was already sent to the Presidency for implementation based on the previous motion.
The disagreement led to an intense exchange, with Senator Aliu Ahmed Wadada expressing anger over the alleged imbalance in the distribution of funds, particularly in his senatorial district and the entire North. Senator Ndume also raised concerns about the low allocation of funds to the North compared to Lagos State.
The Senate President, Godswill Akpabio, intervened and proposed that the motion be stepped down for further consultation, clarifying that stepping it down did not mean it was permanently closed. However, the issue continued to be debated, with Senator Sani Musa, the Chairman of the Ad-hoc committee during the 9th Senate, confirming that a report had been submitted and adopted.
The motion, titled “Uneven Disbursement of half a trillion-naira loan to the six geo-political zones by the Development Bank of Nigeria,” highlighted the disparity in the distribution of the loan. According to the motion, only 11% of the loan went to the 19 states in the North, while Lagos alone received 47%. The Southwest received the highest share of 57%, while other regions received significantly lower allocations.
Last year, the then Minister of Finance, Zainab Ahmed, pledged to review the criteria used by development banks to disburse loans to MSMEs to ensure geographical spread. However, she emphasized the need for sustainability in the operations of development banks.
The rowdy session indicates the level of concern among senators over the alleged uneven distribution of funds and the need for transparency and equitable allocation of resources to promote economic development across the country.
