The House of Representatives has commenced an investigation into the management and utilisation of more than ₦12 trillion disbursed to Nigeria’s Development Finance Institutions (DFIs) over the past seven years.
The investigation followed the inauguration of an ad hoc committee on Wednesday in Abuja to review the operations, funding, and performance of the DFIs amid concerns about their transparency and effectiveness.
Chairman of the committee, Rep. Chidi Obetta, said the probe would assess how funds allocated to the institutions—established to support industrialisation, agriculture, small and medium enterprises (SMEs), and infrastructure—were utilised.
Obetta disclosed that preliminary findings showed that capital injections, budgetary allocations, bond issuances, concessional loans, and donor funds received by DFIs had exceeded ₦12 trillion, though the figure remains subject to verification.
“The investigation is a response to the growing public demand for transparency, accountability, and measurable impact from institutions meant to bridge financing gaps not covered by commercial banks,” he said.
He listed the DFIs under review to include the Bank of Industry (BOI), Bank of Agriculture (BOA), Nigeria Export-Import Bank (NEXIM), Infrastructure Bank, Development Bank of Nigeria (DBN), and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
Obetta explained that the committee would determine whether the funds reached the intended beneficiaries and contributed to job creation, export expansion, and industrial growth.
He stressed that the exercise was not punitive but intended to strengthen the institutions’ capacity, efficiency, and accountability.
The committee, he said, would adopt a transparent and evidence-based process, engaging the DFIs, the Central Bank of Nigeria (CBN), the Ministry of Finance, development partners, and other stakeholders.
“Our goal is to ensure that Nigeria’s Development Finance Institutions operate as effective instruments for inclusive growth, poverty alleviation, and sustainable development,” he added.
Inaugurating the committee, the Speaker of the House, Rep. Tajudeen Abbas, expressed concern over the limited impact of DFIs despite the significant public funds at their disposal.
Represented by the Deputy House Leader, Rep. Halims Abdullahi, Abbas attributed the challenges facing DFIs to poor transparency, political interference, and cautious lending practices.
“In an era when our economic reforms target inclusive growth, the inefficiencies of these institutions are unacceptable,” he said.
“The House will no longer support budgetary allocations to any DFI that cannot demonstrate accountability, responsible financial management, and tangible developmental outcomes.”
He cautioned that public funds must be directed to productive sectors and the citizens they are meant to benefit, warning against diversion or bureaucratic delays.
Representing the CBN Governor, a Director in the apex bank, Mr. Ibrahim Hassan, pledged the bank’s support for the investigation, noting that the CBN would provide technical assistance and relevant records.
He said the CBN regularly supervises DFIs to ensure compliance with prudential standards and sound financial management.
Also speaking, the Managing Director of NEXIM Bank, Mr. Abba Bello, described the probe as timely and necessary, stating that DFIs must deliver measurable economic results.
“These institutions should serve as engines of growth—creating jobs, supporting industries, and generating foreign exchange,” Bello said.
The ad hoc committee is expected to submit its findings and recommendations to the House to strengthen the accountability and performance of DFIs in line with their mandates.
