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: [email protected]