AN OPEN LETTER TO CBN GOVERNOR ON COVID-19 INTERVENTION FUND FOR HOUSEHOLDS AND SMEs

Your Excellency,

CBN Governor Godwin Emefiele

With reference to the Apex bank's circular issued on March 23, 2020, in respect to the CBN N50bn Targeted Credit Facilities (TCF) as stimulus package to support Households, Micro, Small and Medium Enterprises (MSMEs) or Corporate entities being the two modalities considered.

I write on behalf of all Covid-19 loan intervention fund applicants with emphasis to the way and manner this fund was disbursed to the privilege ones, leaving behind thousands applicants waiting for their accounts to be credited since April to date.

However, the first step taken was for an an eligible Households/MSMEs applicants to submit an application to NIRSAL MFB which must, among other things, contained a BVN number, business registration (where applicable) and business plan with clear evidence of adverse impact as a result of pandemic.

Moreover, giving update of disbursement during the previous Monetary Policy Meeting (MPC), the CBN Governor, Godwin Emefiele stated that an approval of N10.9bn was given to 14,333 beneficiaries under the N50bn TCF for households and SMEs, out of which N4.1bn has been disbursed to 5,868 successful beneficiaries under the first batch.

Similarly, we have heard again during the July 2020 Monetary Policy Committee's (MPC's) meeting virtual press briefing that, the CBN Governor, Goodwin Emefiele stated to have disbursed N295.695bn on Covid-19 intervention. The breakdown of the disbursements showed that N49.195bn of the N50 billion Households and SME facility had been disbursed to over 92,000 beneficiaries, N152.9bn to Manufacturing sector and N93.6bn to the healthcare sector, amongst many other sector specific facilities.

More so, according to the CBN during the 13th Annual Banking and Finance Conference in Abuja, the CBN on Tuesday 8th September, 2020 outline the disbursements it had so far made in various sector of the economy to cushion the adverse impact of the Covid-19 pandemic to the tune of N369bn to SMEs, Manufacturers, Pharmaceutical companies etc.

In this regard, the CBN took the decision to increase the size of that intervention from N50bn to N100bn; and so about N69bn of this fund has been disbursed to over 140,000 Households and businesses, while 40 healthcare and pharmaceutical companies have been supported to the tune of about N45bn.

Nevertheless, this disbursement behind closed doors generated a lot of fear, anxiety and controversy in the way and manner in which the intervention fund was disbursed to only privilege few. It is therefore questionable simply because, thousands of applicants doesn't know the status of there application and currently waiting for their accounts to be credited with the intervention fund.

The question to be ask here include the following:-

1. Did NIRSAL MFB duly appraise and conduct due diligence applications process for all applicants?

2. Did NIRSAL MFB forward all application's of applicants to the CBN for final approval?

3. If so, did CBN reviews applications for all applicants and gives final approval for disbursement to NIRSAL MFB?

As for those applicants whose applications linger around express their dismay with the way the disbursement of N369bn was disburses to the privilege Households, SMEs, Manufacturers, and others. Let the Apex bank clarify issues and disburse available fund to those applicants who are not credited since April to date.

Finally, if really true the tune of N69bn of this fund has been disbursed to over 140,000 Households, and businesses, while 40 healthcare and pharmaceutical companies has been supported to the tune of about N45bn, we therefore demand from the CBN the authentic list of published beneficiaries as the NIRSAL MFB Website is not accessible to all applicants to verify.

Thank you and God bless

Long live CBN Governor, Godwin Emefiele

Long live Federal Republic of Nigeria

Signed:

Tanimu Abdullahi a.k.a. Al-Talawiy

National Coordinator

The Buhari Pen Pals Organization

Cc

President Muhammmadu Buhari, GCFR

Senate President

Hon Speaker House of Rep.

House committee on banking & Finance

MD, NIRSAL MFB

N.B Tanimu Abdullahi can be reach on 07036894179/07085252463

Monday, September 21, 2020