N135bn intervention fund: CBN, Petroleum Ministry trade words

The Senate Committee on Gas Resources is currently investigating the allocation of a sum of N135 billion by the Central Bank of Nigeria (CBN) to various companies in the oil and gas sector. This inquiry took an unexpected turn as the CBN and the Ministry of Petroleum engaged in a public dispute before the committee members during the hearing held on Thursday.

Senator Jarigbe Agom Jarigbe, the Committee Chairman, had earlier summoned 15 companies to appear and clarify their use of the disbursed funds, as they were reportedly unwilling to repay the amount. At the hearing, Mrs. Oluremi Komolafe, representing the Ministry of Petroleum, disclosed that while the intervention initiative was indeed initiated by the Ministry, they were not aware of the CBN’s disbursement.

Komolafe explained that the Ministry received 150 applications, recommended 69 companies, and was still processing 16 applications. She clarified that the list was not processed by the Ministry but was forwarded to the CBN for action.

The CBN, represented by Alhaji Sahaad, the acting Director of Project Finance, absolved the bank of any responsibility for the disbursement, stating that they merely provided guidelines for the intervention loan, and the actual disbursement was carried out by commercial banks.

Sahaad stated, “Our role is to facilitate the loan,” emphasizing that commercial banks were responsible for due diligence. Senator Jimoh Ibrahim, however, insisted that the CBN should have been aware of and involved in the disbursement process, arguing that commercial banks could not have disbursed the intervention fund without CBN guidance.

The Committee Chairman threatened to involve anti-graft agencies to recover the funds from defaulting beneficiaries, citing discrepancies in the disbursement, particularly with companies like Dangote Refinery and Pinnacle Oil and Gas using the funds for projects beyond the specified threshold. The senators accused the CBN and the Ministry of Petroleum of conflicting actions, allowing beneficiary companies to evade repayment.

The 15 summoned companies include Nigeria Independent Petroleum Company, Plc, NIPCO, Hyde Engineering and Construction Company, Pinnacle Oil and Gas, Dangote Oil Refinery, Lee Engineering and Construction Company, Nova Gas, and nine others.