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Banks’ Funding Failure: The Shocking Rot In Nigeria’s Intervention Programmes

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Banks Funding Failure NDIC, CBN

By Blaise Udunze

For over a decade, the Nigerian government and its financial institutions have launched a flurry of intervention funds, all with the promise to empower industries, revive the manufacturing sector, and lift millions of micro, small, and medium enterprises (MSMEs) out of financial drought. From agriculture to aviation, from creative industries to export promotion, these funds were designed as catalysts for inclusive growth and job creation.

But today, the story reads like a tragic irony. Trillions of naira later, there is little impact to show. Factories remain underutilized, MSMEs struggle to survive, and unemployment continues to soar. The rot runs deeply entrenched corruption, politicization, poor monitoring, and widespread loan defaults have turned what should have been Nigeria’s economic lifeline into a cautionary tale of mismanagement and missed opportunities.

The Central Bank of Nigeria (CBN) and the Bank of Industry (BOI) have, over the years, spearheaded multiple intervention programmes. In 2013, the N220 billion MSME Development Fund (MSMEDF) was launched to empower small businesses, with a special 60 percent allocation for women. Yet, more than a decade later, thousands of genuine entrepreneurs say they never accessed the fund, while others question the transparency of disbursement. The Anchor Borrowers’ Programme (ABP), launched in 2015, aimed to link smallholder farmers to processors and was hailed as a masterstroke for agricultural self-sufficiency. Over N1 trillion reportedly flowed into the scheme. But the dream soon dimmed with ghost beneficiaries, political interference, and poor loan recovery exposed a programme riddled with abuse.

Similarly, the Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS), a CBN-backed initiative pooling five percent of banks’ profit after tax, began as a noble effort to stimulate SMEs. However, its later years were marred by disbursement bottlenecks and allegations of insider favoritism. Commercial banks and some designated financial institutions, instead of acting as facilitators, became gatekeepers of corruption. Bribes, favoritism, and endless paperwork became the norm. Funds meant for productive ventures were sometimes redirected to political allies or misapplied by the very institutions entrusted with disbursement.

Rather than empowering Nigeria’s real economy, intervention loans too often empowered a network of insiders who saw the programmes as avenues for rent-seeking. The impenetrability of these schemes made them convenient channels for political reward and institutional looting. Once the funds leave government coffers, tracking them becomes an exercise in futility. There are no reliable public databases showing who got what, how much was repaid, or what impact was achieved.

The rot is not confined to agriculture. The Creative Industry Financing Initiative (CIFI), launched in 2019 to nurture Nigeria’s entertainment and digital sectors, became mired in controversy over opaque selection and limited reach. The Real Sector Support Facility (RSSF) and the Textile Sector Intervention Fund, meant to boost manufacturing and revive the textile industry, also suffered from weak monitoring and low repayment discipline. During the pandemic, the N400 billion COVID-19 Targeted Credit Facility (TCF) was touted as a lifeline for households and small firms. Administered by NIRSAL Microfinance Bank, it sparked hope among struggling entrepreneurs, but soon, the familiar patterns emerged as connected elites got the funds, while genuine applicants were locked out.

Official data reveals that the CBN has disbursed over N10.3 trillion across various interventions in less than a decade with an unprecedented scale of funding. When combined with BOI-managed programmes such as the Government Enterprise and Empowerment Programme (GEEP) and the Export Expansion Facility Programme (EEFP), total earmarked intervention funds likely exceed N12 trillion. Yet, Nigeria’s industrial contribution to GDP remains below 10 percent, and MSMEs with the supposed beneficiaries continue to struggle with high costs, poor infrastructure, and limited credit access.

Over the years, numerous intervention funds have been launched to support industries and MSMEs from the N220 billion MSME Development Fund and N300 billion Real Sector Support Facility to the N200 billion SME Restructuring and Refinancing Fund. However, poor administration, corruption, and diversion have undermined these initiatives. A 2023 report by the Auditor-General revealed that billions of naira from these schemes were either unaccounted for or misapplied, with funds channeled through commercial banks that prioritized profit over impact.

For instance, the CBN’s N220 billion MSME Development Fund has only seen about N83 billion disbursed over seven years. The Survival Fund, though lauded in principle, has delivered roughly N67.5 billion to over 1.25 million beneficiaries, including cases where mobilisation fees were collected but goods or services never followed. An N5 billion SME loan fund through SMEDAN and Sterling Bank saw only N250 million actually reach business owners. Even in interventions like BOI’s N75 billion Manufacturing Sector Fund, less than a third had been disbursed to manufacturers, with many applications still awaiting approval. These examples speak not to scarcity of funds, but to failures in administration, accountability, and access.

The cost of Nigeria’s failed intervention programmes goes beyond wasted billions; it has crippled the very sectors they were designed to rescue. Thousands of promising small businesses are left stranded without access to affordable credit, while manufacturers continue to struggle with obsolete equipment, erratic power supply, and prohibitive interest rates. Instead of catalyzing growth, these funds have deepened dependency, encouraged corruption, and distorted the credit market.

The result is a stunted industrial base, where innovation and expansion are sacrificed on the altar of bureaucracy and greed. Many entrepreneurs who could have scaled production or entered export markets have shut down under the weight of unmet promises. Jobs that could have been created remain mere statistics in policy documents, while Nigeria’s ambition to diversify its economy beyond oil continues to falter.

In the ongoing investigation into the Central Bank of Nigeria’s activities, news reports have uncovered that scrutiny may extend to Chief Executive Officers and senior management personnel of various banks. The investigation seeks to examine potential discrepancies related to the management of intervention funds by deposit money banks. This revelation follows reports that the CBN might be compelled to withdraw its released audited annual financial reports after investigators uncovered irregularities and inconsistencies.

This unfolding probe, led by Special Investigator Jim Obazee, who was appointed by President Bola Tinubu in July 2023 as this mark one of the most comprehensive financial examinations in Nigeria’s history. Obazee’s mandate extends beyond the CBN to include other Government Business Entities (GBEs), with the goal of plugging financial leaks and holding corrupt individuals accountable. According to the Secretary to the Government of the Federation, George Akume, the forthcoming audit report will shed light on governance failures that have long crippled Nigeria’s financial system.

One key revelation involves intervention funds totaling N1.27 trillion reportedly held in the accounts of five major banks: Access Bank, Fidelity Bank, Guaranty Trust Bank, United Bank for Africa, and Zenith Bank. These funds cover various CBN lending schemes, including the Commercial Agriculture Credit Scheme, Real Sector Support Facility, and state bailouts. Access Bank alone held about N530 billion in intervention funds, while Fidelity Bank retained roughly N310 billion.

Several banks have also been found to hold undisbursed funds from the CBN earmarked for programmes like the Anchor Borrowers’ Scheme and the Commercial Agriculture Credit Scheme. As of June 2023, Guaranty Trust Holding Company, Wema Bank, and Sterling Financial Holdings collectively held N114 billion in Anchor Borrowers’ funds, while seven banks, including UBA, Access, Zenith, and Fidelity, retained N94 billion from the agriculture credit scheme.

As the investigation progresses, bank executives were expected to be summoned for questioning. The revelations underscore the depth of systemic dysfunction, where funds meant for development sit idle or are diverted, while small businesses gasp for credit.

Amid the turbulence, the newly appointed CBN Governor Olayemi Cardoso called for a radical shift in the bank’s role. During his Senate screening, he emphasized the need to refocus the CBN on its core mandate of monetary stability rather than direct development finance. Cardoso warned that the CBN’s historical foray into fiscal interventions had blurred institutional boundaries and undermined credibility. His plan is to transition the bank toward a more limited advisory role, one that supports economic growth without entangling itself in politically driven lending.

This reorientation is timely. As of October 2022, nearly 10 trillion had already been disbursed as intervention funds, much of it tied to agriculture and small business support. Yet controversies over beneficiary selection, repayment defaults, and limited impact persist. Experts have urged a full-scale audit and restructuring of these programmes, recommending that future interventions be channeled through relevant ministries and agencies, not the CBN to ensure proper oversight and impact measurement.

Before the next bailout or recovery initiative is launched, both the CBN and BOI must clean house. This means full public disclosure of all beneficiaries, proper audits of past disbursements, and the recovery of misapplied or stolen funds. The impenetrability that has shielded corruption for years must give way to transparency, backed by digital tracking systems and citizen oversight.

Beyond cleansing their books, these institutions must also rethink their approach. Development finance should no longer be routed through rent-seeking commercial banks that profit without producing impact. Instead, direct digital lending platforms, strict eligibility verification, and measurable impact tracking should define the new model.

Nigeria’s intervention programmes must undergo radical reform anchored on transparency, technology, and traceability. Every fund should have a publicly accessible portal listing disbursements, beneficiaries, and repayment status. Periodic audits that are independently verified must be mandatory, not optional. Beyond financial engineering, Nigeria must fix the enabling environment for consistent power supply, logistics, security, and regulatory stability that makes business growth possible.

The shocking rot in Nigeria’s intervention programmes is not just a financial scandal; it is a betrayal of national trust. Trillions have been poured into schemes that promised jobs and prosperity, yet delivered little beyond paperwork and propaganda. Unless Nigeria cleans up the system, enforcing accountability and rewarding genuine productivity, its intervention funds will continue to fund failure, not progress.

Blaise, a journalist and PR professional writes from Lagos, can be reached via: bl***********@***il.com

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This Is Not the Season to Miss Anything (Because the Internet Will Not Wait for You)

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DStv and GOtv

There were times when entertainment moved slowly enough that you could catch up later without missing much. This is not one of those times. Right now, everything is happening at once, and if you blink, the internet will already summarise it for you in a version that may not even be fully accurate.

We are in a phase where the moment a show, movie, or reality series airs, clips are already circulating online before many people have watched the full episode. Opinions are formed from short edits, screenshots, and snippets rather than the full context, and conversations often take shape around what has been clipped and shared instead of what actually happened in real time. The ongoing BBNaija Reunion is a clear example of this, with viral moments driving debates and narratives long before many viewers have seen the complete exchange.

And it is not just Big Brother.

The World Cup is literally here, and you already know what that means. Most of the matches are played deep into the night, so many people will wake up to scores they didn’t watch live, scroll cautiously through social media trying to avoid spoilers, or quickly hunt for highlights before someone ruins the result in a group chat or on X. Somehow, everyone will still be expected to join the “did you see that match?” conversation the next morning as if they were awake through every minute of it.

This is the reality of modern viewing: nobody is waiting for you anymore. The funny part is what people do when they miss it. You will see someone on X asking, “abeg who has the link to watch last night’s episode?” and within minutes, replies start flying. Somebody drops a Telegram channel like it is normal, another person shares a random website link, and another group is already posting 30-second clips with captions like “full gist inside” as if that is the full experience.

Before you know it, people are no longer watching the show. They are watching fragments, then opinions, then blog interpretations, then X reactions. And somehow that becomes the version of events that spreads fastest.

That is where the problem starts. Social media does not give context. It gives highlights. Blogs chase clicks, not full stories. Even viral clips in group chats are usually missing the build-up that actually explains why people reacted the way they did.

So, you find yourself arguing passionately about something you did not fully watch. You are forming opinions from “see finish” clips and half-context screenshots. And when you finally watch the full episode later, everything suddenly makes more sense than the version you were dragged into online.

That is why access is becoming more important than ever. Not just access to content, but access to it in real time. Because nothing really hits like watching it live, as it unfolds, with everyone reacting at the same moment. Whether it is a last-minute World Cup goal, a heated reunion moment, or something that instantly becomes meme history, the experience is always different when you are actually there for it.

And this is exactly where viewing has changed. People are no longer tied to one screen in the sitting room. Life does not even allow that anymore. You might be in traffic, at work, outside, or simply away from your decoder when something important is happening, which used to mean you missed your favourite show; now you don’t have to.

Because platforms like DStv and GOtv now let you stay connected even when you are not in front of your television. So instead of chasing Telegram links that may or may not work, which is piracy by the way, or waiting for someone to “summarise what happened,” you can actually watch it yourself.

You can still stay connected using the MyDStv or GOtv Stream app. It is simple. Download the app from your store, log in with your account details, ensure your subscription is active, then head to the Live TV section and select the channel you want. In a few taps, you are back inside the moment everyone is talking about.

And honestly, that is what this season demands. Between Big Brother conversations taking over timelines, new reality TV seasons building buzz, and the World Cup about to dominate every screen in the next few days, this is not the time to be disconnected. Not even the time to say “I’ll catch up later”, because later is exactly where spoilers live now.

So, whether you are watching from your decoder at home or streaming from your phone on the move, the point is the same: you are not out of the conversation. Because in today’s world, missing the show is one thing.

Missing the moment everyone is talking about? That one is harder to recover from.

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A Tale of Two Kidnappings

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By Tony Ogunlowo

In the past few weeks, two high-profile kidnapping cases have captured the attention of the nation. One involved the kidnapping of more than 45 pupils and teachers from a school in Oyo state, and the other involved the relatives of an ex-minister.

Whilst the relatives of the ex-minister, his sister and her two sons, were rescued in a highly publicised police operation, the fate of the missing school children and their teachers remains unclear. Already two teachers have been killed: one was shot and the other beheaded.

Nigeria is a hotbed for kidnapping, and in 2025 alone, there were more than 4,000 reported cases. But bear in mind that for every case recorded, two or three went unreported, leaving relatives to deal with ransom demands on their own. And for cases reported, the overstretched and understaffed police are not much help and often suggest relatives negotiate with kidnappers. As a result, what was once a small sore has now festered, becoming an even bigger wound and growing.

It has been more than twelve years since 276 girls were kidnapped from their school in Chibok. To date, not all of them have been recovered. Some have died whilst others, heavily traumatised, have been found bearing children of their captors: their lives destroyed and those of their families.

The swift rescue of the ex-ministers’ relatives in a short window of just a few days points to one thing – elitism! If you’re well-connected, the powers that be will pull out all the stops to do what they’re supposed to be doing in the first place. If you’re a mere ordinary citizen, they can’t be bothered.

Even though the Federal Government has a policy of not negotiating with kidnappers, which is understandable since they don’t want to encourage the practice, they should have the means to end the scourge. Every government from the Obasanjo regime up to the incumbent have promised to take a hard line on abductions and banditry. To date, all that hardline rhetoric has just been ‘audio’, leaving bandits and kidnappers to get up to all sorts of things. There have been calls to allow citizens to take up arms: not a good idea, as this might encourage extrajudicial killings rather than for self-defence. There have also been calls for stiffer penalties, but, yet again, you need to catch the perpetrators first and make sure they don’t bribe their way out of the judicial system. The Forest Guards program is taking off, and hundreds of them are being recruited, trained and deployed, but are they paramilitary trained to be able to fight kidnappers in the bush?

Just like when the Chibok girls went missing under President Goodluck’s watch, the government is taking a lukewarm approach to the matter. What should be classified as a top priority has been pushed to the bottom of the list as all politicians rush to get their nomination forms in for the 2027 elections: the only thing that matters to them. If this were America, Trump would have mobilised the Army, Navy, Air Force, CIA, and whatever else he could think of to find ALL kidnapped victims. In Nigeria, the only thing politicians are interested in, their top priority, is re-election.

Children’s Day has come and gone, and so also has Democracy Day, as we head towards Independence Day, and somebody’s child, uncle, aunt, husband is still being held against their will with the security services running around like headless chickens, clueless as to what to do next. What happened to their network of informers? Are their surveillance techniques so primitive that they can’t locate a large gathering of people in the bush? Surely contact has been made with all kidnappers so they can list their demands, and why haven’t these leads been tracked using basic cellular telephony technology? But if it’s an ex-minister’s relative, they know how to pull a rabbit out of a hat.

Until the government adopts a zero-tolerance policy towards kidnapping and banditry – and sticks to it, these unfortunate incidents will continue.

Perhaps it’s time to seek foreign assistance since we don’t know what to do: already, Trump has stationed US troops, up North, to help us fight Boko Haram and ISIS. They already have the technology and personnel that can find a fly hiding behind a dune in the Sahara. An ordinary Air Force surveillance plane, or drone, equipped with heat-seeking infra-red cameras, overflying the place at night can easily find anyone hiding out in the Old Oyo park within hours, not days. And please don’t involve the NAF, who seem to bomb more innocent people than bad guys! Alternatively, bring in Sheikh Gumi, who seems to know most of the bandits. He might be able to help.

There is no easy fix to ending insecurity in Nigeria other than to bring in a brutal state of emergency that will grant security services carte blanche to deal with situations as they see fit. Again, this can lead to abuse of power, as was the case with the disbanded SARS.

To truly eliminate all insecurity in the country, the government needs to think long-term and go back to the root cause of all these problems – hunger. A hungry man (or woman) faced with unemployment and a high cost of living, with nothing to lose, will be crazy enough to do any kind of crime to put food on the table and a roof above his head. Doubling the size of the security services and equipping them doesn’t solve the problem.

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Democracy and Problems; Made in Nigeria

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By Prince Charles Dickson (PhD), and Dorcas Bawa

Nigeria’s democratic question is often wrongly framed as if democracy is a foreign garment that we must keep adjusting until it fits our body. We speak of Westminster, Washington, Athens, Paris and every borrowed vocabulary of governance, yet the wound before us is neither Greek nor British nor American. It is Nigerian. Our hunger is Nigerian. Our insecurity is Nigerian. Our broken families are Nigerian. Our abandoned children are Nigerian. Our vote-buying, ethno-religious suspicion, weak local institutions, elite impunity and democratic impatience are Nigerian. Therefore, any democracy that will heal us must be made in Nigeria.

This is not a call for isolation. It is a call for ownership. Democracy cannot survive as imported furniture placed in a burning house. It must grow from our values, culture, history and realities. It must be owned by the people, shaped by our communities, and driven by our collective aspirations for justice, equity and peace. It must answer the question of the farmer in Bassa, the displaced woman in Barkin Ladi, the market woman in Jos, the young person in Mangu, the traditional ruler trying to hold a fractured community together, the child who no longer trusts the home, and the citizen who has voted many times but has not yet felt government as care.

Since 1999, Nigeria has travelled a long and uneven democratic road. The return to civil rule after years of military dictatorship was not a small achievement. It restored constitutional government, reopened civic space, revived political parties, strengthened the press, expanded civil society engagement, and gave citizens the language with which to question power. We have had repeated elections, transitions between administrations, legislative contests, judicial interventions, public protests, investigative journalism and a growing generation of young Nigerians who no longer kneel before authority simply because it wears a title.

These are gains. They must not be dismissed.

But democracy is not merely the presence of elections. It is the presence of dignity. It is not only the counting of votes. It is the counting of lives. It is not complete because politicians campaign, courts sit, governors are sworn in, and budgets are read. Democracy becomes real when the weakest person in the community can say: “This country sees me. This system protects me. This government serves me.”

That is where our democratic journey remains painfully unfinished.

From 1999 to date, Nigeria has built the rituals of democracy faster than the culture of democracy. We have mastered rallies, slogans, posters, primaries, manifestoes, defections and inauguration ceremonies, but we have not sufficiently mastered accountability, inclusion, local ownership, civic discipline and justice. Too much power remains concentrated at the centre. Too many local governments exist more as salary points than as engines of grassroots development. Too many communities are remembered only during elections, condolences or conflict assessment visits. Too many citizens are mobilised as voters but abandoned as human beings.

Democracy made in Nigeria must therefore begin with the people at the centre. Government exists to serve the people, not the other way around. A system that treats citizens as spectators between election cycles is not a democracy. It is a political theatre with ballot boxes. A homegrown democracy insists that the woman, the youth, the person with disability, the displaced, the farmer, the trader, the child, the minority voice and the forgotten community are not footnotes in the national story. They are the story.

To be homegrown, democracy must also be rooted in culture, but not in the abusive misuse of culture. It must respect our languages, traditions, communal memory and ways of life, while refusing every cultural excuse for injustice. Culture should be a bridge, not a cage. It should protect the vulnerable, not silence them. It should teach respect for elders, but also responsibility by elders. It should honour family, but never hide violence inside family walls. It should value community, but never allow community loyalty to bury truth.

The crisis of Nigerian democracy is not only in Abuja. It is also in the home. It is in the family meeting where girls are denied inheritance. It is in the compound where abuse is covered because the offender is related. It is in marriage where responsibility is abandoned. It is in the neighbourhood where everyone knows a child is suffering but waits for the “government” to arrive. It is in the community where young people are recruited into dangerous labour because poverty has become an employer. It is in the silence that violence teaches how to grow teeth.

A recent week in the Plateau State Gender and Equal Opportunities Commission, particularly the Public Complaints and Mediation Department, tells a disturbing story. In one case, a sixteen-year-old schoolgirl became pregnant after alleged abuse within her own home. In another case, an eight-year-old girl from Tudun Wada was brought before the Commission after an alleged sexual assault by a neighbour. Her story was already layered with tragedy: displacement, loss of parents to violence, and dependence on an aged grandmother. Another ten-year-old child had to be reunited with her family in Enugu Agidi after two years of maltreatment while living with a distant relative in Jos. She required psychosocial support before returning home.

In the same week, an illegal commercial motor park around Anguldi in Jos South Local Government Area was reported. The Police were swiftly deployed, and arrests were made. Twelve young people, including three young women, were brought to the Commission. Early interrogation suggested a troubling pattern: the park operated weekly, moving young teenagers from Jos to Ibadan.

These are not isolated moral accidents. They are democratic alarms. But the entire team somehow collectively succeed because they understand the terrain.

Conflict does not end when gunfire stops. It enters homes. It alters parenting. It displaces children. It weakens supervision. It breaks livelihoods. It creates fear, dependency, resentment and desperation. A society that does not heal its conflict will eventually watch that conflict migrate into marriage, childhood, education, labour, politics and faith. The family becomes the first casualty, and later, the polling unit becomes only a mirror of the wounded home.

This is why democracy cannot be discussed only in constitutional language. It must be discussed in human language. When family values erode, democracy suffers. When parental responsibility collapses, democracy suffers. When the culture of respect for human dignity becomes almost non-existent, democracy suffers. When children are unsafe, women are overburdened, fathers disappear from responsibility, mothers are left unsupported, and communities outsource morality to government agencies, democracy becomes a tree without roots.

The problems holding us back are therefore clear. We continue to operate systems that often ignore local realities. We suffer from the concentration of power and the lack of accountability. Our local institutions are weak. Our democratic culture is poor. Tribalism, ethnicity and religious intolerance are too easily weaponised. Many citizens are apathetic because they have been disappointed too often. Others are active only when their group interest is touched. But a person who participates decides their destiny. A person who watches politics from the balcony should not be shocked when decisions are taken in rooms where they are absent.

Homegrown democracy must be community-driven. Decisions must be shaped at the local level through dialogue, consensus and trust. Nigeria cannot continue to pretend that Abuja can understand every stream, shrine, church, mosque, market, grazing route, school, boundary dispute and family wound better than the people who live with them daily. Local problems require local intelligence. But local intelligence must be connected to justice, not captured by local power brokers.

This is why traditional rulers, community heads, women leaders, youth groups, faith leaders, civil society organisations, government agencies, schools, security institutions and families must become democratic actors, not passive observers. Democracy is not INEC alone. It is not the National Assembly alone. It is not the courts alone. Democracy is the mother who protects her child, the father who carries responsibility with honour, the neighbour who reports abuse, the teacher who notices distress, the police officer who acts promptly, the mediator who listens carefully, the traditional ruler who refuses to hide wrongdoing, the pastor and imam who preach dignity, and the citizen who refuses to sell tomorrow for a small envelope today.

Finally, we must rebuild the moral architecture of the family. Mothers, fathers, guardians, relatives and neighbours must rise to nip these issues in the bud. The home is not outside democracy. The home is where citizenship first learns either care or cruelty. If the child learns silence in the face of abuse, she may become an adult who fears power. If the child learns dignity, he may become a citizen who demands justice.

Our country. Our democracy. Our future—May Nigeria win.

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