E-Financial
Banks’ Funding Failure: The Shocking Rot In Nigeria’s Intervention Programmes
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]
Nigerians lost N25.85 billion to digital payment fraud in 2025, according to Central Bank of Nigeria (CBN).
Though the figure represents a significant decline from the N52.26 billion recorded in 2024, CBN, said the losses remained substantial for payment service providers (PSPs).
According to the report, although the value of digital payment fraud declined significantly year-on-year, when compared to the N52.26 billion recorded in the previous year, the losses remained substantial for Payment Service Providers (PSPs), underscoring the need for stronger fraud prevention measures across the industry.
In the report, the CBN, also identified systemic risks, cyber threats, the dominance of a few systemically important payment service providers, and the activities of unlicensed payment companies as major concerns confronting the financial sector.
According to the report, although the value of digital payment fraud declined significantly year-on-year, the losses remained substantial for Payment Service Providers (PSPs), underscoring the need for stronger fraud prevention measures across the industry.
“Digital payment fraud in Nigeria stood at N25.85 billion in 2025,” the apex bank said.
It noted that while this represented a considerable improvement from the N52.26 billion lost in 2024, the amount remained significant.
“Though this was lower than N52.26 billion in the preceding year, it represented a substantial loss for PSPs,” the report stated.
The CBN attributed the reduction in fraud losses to enhanced security measures implemented across the financial sector.
It said, “The lower losses in 2025 reflected improvements in monitoring, BVN-NIN integration, and tighter controls.”
Beyond fraud, the report warned that Nigeria’s rapidly expanding digital payments landscape faces increasing systemic vulnerabilities as banks and fintech companies become more interconnected through shared payment infrastructure.
According to the report, a major operational failure involving a single payment service provider could quickly spread across the financial system because of the growing dependence on integrated payment platforms.
The CBN observed that despite ongoing efforts to strengthen payment system integration, interoperability remains a significant challenge.
It disclosed that about half of fintech stakeholders continued to express dissatisfaction with the current level of system-wide interoperability.
The report stated that “about 50.00 per cent of fintech stakeholders continued to rate system-wide interoperability as poor, primarily due to the lack of universal APIs and data-sharing standards.”
The apex bank also expressed concern over the concentration of payment activities among a few Systemically Important Payment Service (SIPS) providers, warning that operational failures involving any of them could have widespread consequences.
It explained that the failure of such providers could trigger a “domino effect”, where insolvency or operational glitches in one payment service provider spread rapidly to others, disrupting the smooth functioning of the financial system.
Cybersecurity also featured prominently among the risks identified in the report.
The CBN warned that payment service providers remain vulnerable to ransomware attacks, data breaches and credential theft, noting that cybercriminals are becoming increasingly sophisticated in targeting financial institutions.
According to the report, “Banking and fintech institutions remained prime targets for ransomware, data leaks, and credential theft.”
It added that, “Cyber threats in Nigeria are no longer random cybercrimes, but increasingly targeted, organised, and identity-driven campaigns.”
The report further cautioned Nigerians against transacting with unlicensed payment companies, stressing that such entities operate outside regulatory oversight and expose users to significant financial risks.
It warned that customers using unlicensed PSPs are not protected by existing regulatory safeguards and that such operators could facilitate illicit financial activities.
“Users of unlicensed PSPs are not covered by regulatory protection that comes with effective oversight and supervision,” the CBN said.
It further warned that, “Unlicenced payment companies are gateways for money laundering which could undermine regulatory efforts and corrode public trust.”
The report underscores the growing importance of strengthening fraud detection systems, improving payment infrastructure interoperability, enhancing cybersecurity resilience, and intensifying regulatory oversight as Nigeria continues to expand its digital payments ecosystem.
Nigeria Revenue Service (NRS) yesterday announced that medium and large companies in Nigeria that earn income from cryptocurrency and other virtual asset transactions will now be subject to a 30 per cent corporate income tax.
NRS stated this in its new guidelines setting out a tax framework for cryptocurrency and other digital asset transactions.
The guidelines cover registration, record-keeping, valuation, and tax treatment for VASPs, P2P operators, and individuals in the virtual asset space.
NRS said the move is aimed at encouraging voluntary compliance and improving transparency as Nigeria’s digital asset sector grows.
The Guidelines on the Taxation of Virtual Assets, provide a comprehensive framework for the taxation of virtual asset transactions and businesses operating within Nigeria’s digital economy.
The guidelines apply to companies, individual taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators and other participants in the virtual asset ecosystem
The latest framework follows the signing of the Presidential Executive Order on Virtual Assets Coordination, 2026 by President Bola Tinubu, which established a coordinated regulatory structure for cryptocurrencies, stablecoins, tokenised assets and other digital assets across government agencies.
According to the NRS, companies that derive profits from virtual asset activities will be taxed under the provisions of the Nigeria Tax Act (NTA), 2025. While small companies will continue to enjoy applicable tax exemptions under the law, medium and large companies will be liable to the standard 30 per cent corporate income tax rate.
The agency stated that taxable income under the guidelines covers a broad range of virtual asset-related activities, including cryptocurrency trading, the operation of virtual asset exchanges, transaction fees, brokerage commissions, custody and wallet services, token issuance, mining, staking, decentralised finance (DeFi) activities, investment gains and other virtual asset business operations.
According to the guidelines, “Applicable rates under the NTA include progressive rates for individuals, and 30 per cent for companies other than small companies.”
The NRS said the guidelines were introduced to provide clarity, certainty and consistency in the administration of Nigeria’s tax laws as they apply to virtual assets, adding that the framework is intended to improve transparency, encourage voluntary tax compliance and support the development of an efficient tax regime for the digital asset sector.
The agency also clarified that merely holding cryptocurrencies or other virtual assets does not constitute a taxable event.
Any appreciation in the value of a digital asset while it remains in a taxpayer’s possession will not attract income tax until the asset is sold, exchanged or otherwise disposed of through a taxable transaction.
Similarly, transfers of cryptocurrencies or other virtual assets between wallets owned and controlled by the same individual are exempt from income tax, provided there is no change in beneficial ownership.
This means that moving digital assets such as Bitcoin or Ether between personal wallets will not trigger a tax liability.
However, the exemption does not extend to transfers involving companies, partnerships, trusts, unincorporated associations or other legal entities, where different tax rules may apply.
The NRS further explained that although these non-taxable transactions do not attract immediate tax, they establish the acquisition cost for future disposals.
Consequently, taxpayers are required to maintain adequate records of acquisitions, transfers and disposals to facilitate accurate tax computations when taxable events occur.
The guidelines also reaffirm that unrealised gains on cryptocurrencies and other virtual assets are not subject to income tax. Instead, tax liability arises only when a taxable disposal takes place, aligning Nigeria’s approach with internationally recognised principles for the taxation of digital assets.
The issuance of the guidelines is expected to provide greater regulatory certainty for investors, businesses and digital asset service providers, while strengthening the government’s efforts to expand the tax base and improve compliance in Nigeria’s growing virtual asset ecosystem.
As more Nigerians adopt digital financial services, fraudsters are also finding new ways to target unsuspecting users. Nigeria has recorded more than 24.1 million compromised online accounts since 2004, with hundreds of thousands of additional cases reported in early 2026. While these figures are not limited to financial accounts, they highlight the growing exposure of personal information and login credentials online.
Fraudsters often use phishing links, impersonation and other social-engineering tactics to trick people into revealing sensitive information such as passwords, OTPs, BVN or NIN details.
To help users strengthen the security of their accounts, PalmPay provides a range of built-in protection tools. One of these is the Transaction Guard.
The feature enables users to set single, daily, or monthly transaction limits. Whenever a transaction exceeds that limit, an additional verification step; facial verification- is required before it can be completed. This helps reduce the risk of unauthorized transfers, even if an account has been compromised.
Here’s how Transaction Guard helps keep your money safe:
- Keeps User in Control
The feature gives you greater control over your account by ensuring that higher-value transactions require your facial verification before they are processed. Transaction Guard requires facial verification before eligible transactions are completed, making it harder for unauthorized users to move your funds.
- Helps Mitigate Account Takeovers
Even if your login credentials or OTP are compromised, Transaction Guard helps limit potential losses by requiring an additional verification step that fraudsters cannot easily complete.
- Reduces the Risk of Fraud
By activating this security checkpoint, Transaction Guard helps protect users against common fraud attempts, giving them greater confidence when faced with scam attacks.
In a recent interview, Femi Hanson, Head of Marketing, PalmPay said: “Nigerians are increasingly embracing digital payments in their everyday lives hence maintaining trust and confidence of users must remain a top priority. Today, security is just as important as speed and convenience. That’s why PalmPa is continuously investing in solutions that give our customers greater control over their finances. Transaction Guard is one of those security features we’ve introduced to help users add an extra layer of protection to their accounts and mitigate fraud.”
How to Activate Transaction Guard
Activating Transaction Guard is quick and easy. Simply open the PalmPay app, go to Profile, tap Security Center, select Transaction Guard, switch it on, and complete the verification process.
As digital payments become embedded in everyday life, taking advantage of built-in security features can make a significant difference. By enabling Transaction Guard, PalmPay users can better protect their accounts and enjoy a safer, more secure digital banking experience.
NBC Files Fresh Appeal against Judgment Barring it from Imposing Fines on Broadcast Stations
Nigerians Lost N25.85Bn to Digital Payment Fraud in 2025 –CBN
NRS Announces 30 Percent Tax on Corporate Crypto Income
Kaspersky Identifies Cyberespionage as a Growing Threat Across Africa, Others
PalmPay’s Transaction Guard Gives Users More Control, As Fraud Tactics Evolve
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
BON Establishes Six Ad Hoc Committees to Modernize Broadcasting
Tokenization, Blockchain Technology will Transform Financial Institutions – IMF
News2 days agoAtte, Nigerian Develops AI Algorithm for Hair Transplants
E-Financial2 days agoFCT Court Awards Ex-Customers N15m against Stanbic IBTC over Data Privacy Breach
News2 days agoFG to Abolish Subsidies in Power Sector in 2027 – Minister
E-Financial2 days agoCBN Exposes over 13,000 BVNs Tied to Fraud as Banks Tighten Security
General News2 days agoDare Tackles Onaiyekan over Criticism of Tinubu, Says Economic is Working
General News2 days agoSERAP Asks Tinubu to Probe Alleged N6.79Bn Missing Police Funds, Firearms
Telecom2 days agoStarbase Technologies Introduces Yolly, a Reward-Based Social Entertainment Platform
General News2 days agoLenacapavir, HIV Injectable Drug Offers Pregnant, Lactating Mothers 100 Percent Protection – Study