Former Nigerian presidential candidate Peter Obi on Wednesday demanded transparency from President Bola Tinubu’s government over the alleged disbursement of more than one trillion naira ($1 billion) in loans to micro, small and medium enterprises (MSMEs) since 2015, questioning where the funds had gone amid persistent economic woes.
In a pointed statement titled “Where Did ₦1 Trillion Go?”, Obi, the 2023 Labour Party flagbearer and ex-governor of Anambra state, challenged claims by the Development Bank of Nigeria (DBN) that it had channelled the funds through 79 participating financial institutions to support over 69,000 MSMEs, particularly in economically disadvantaged regions.2ee303
The DBN, a government-backed institution established to boost SME financing, announced the milestone earlier this month, with managing director Tony Okpanachi stating it aimed to expand its loan portfolio to 1.8 trillion naira over the next five years, focusing on job-creating sectors like manufacturing and agriculture.72aacc
Obi, however, described the reported impact as “grand deception,” arguing that ordinary Nigerians had seen no tangible benefits despite the scale of the intervention. “Unemployment remains at a record high, businesses are struggling to survive rather than thriving, many enterprises are shutting down or relocating outside Nigeria, and poverty is deepening instead of reducing,” he said in the statement posted on his X account.22eea6
Citing interactions with small business owners during his travels, Obi claimed over 80 percent were unaware of the DBN’s existence or any loans received. “If indeed such an amount was deployed to support enterprises, the results should be evident,” he added, estimating that one billion dollars in average $1,000 loans could have aided a million businesses and created up to three million jobs.029cbf
The Labour Party stalwart called for detailed accountability on beneficiaries, new businesses spawned, jobs generated and poverty alleviation metrics, warning that without proof, the scheme risked being “scarce national resources captured by a few elites and recycled under the guise of empowerment.”e78930
His remarks echo longstanding concerns over the equity of such programmes. A 2023 Senate motion spotlighted regional imbalances in DBN loan distribution, with the southwest zone receiving 57 percent of funds while northern states got just 11 percent.4dc017
The Tinubu administration, which took office in May 2023, has prioritised MSME support as part of broader economic reforms amid soaring inflation above 30 percent and youth unemployment exceeding 40 percent, according to official data. Neither the presidency nor the DBN responded to Obi’s queries by Wednesday evening.
Obi’s intervention comes as Nigeria grapples with fiscal strains, including a naira devaluation and subsidy cuts, fuelling public scepticism over government spending. Analysts say greater transparency in development finance could rebuild trust in such initiatives.
