REQUEST FOR INFORMATION ON THE STATUS OF THE $7 BILLION ‘SOFT LOAN’ GRANTED TO THE 14 CONSORTIUM OF BANKERS IN 2006 BY THE CBN

Civil Society Network Against Corruption (CSNAC) is a coalition of over hundred and fifty Anti-corruption organizations whose primary aim is to constructively combat corruption vigorously and to ensure the effective monitoring of the various Anti-graft agencies in the fight against corruption and contribute towards the enthronement of transparency, accountability, probity and total commitment in the fight to eradicate corruption in Nigeria.

On October 5th 2006, THISDAY Newspaper reported that, the Central Bank of Nigeria (CBN) through its Head of Corporate Affairs, Mr. Festus Odoko disclosed on October 04, 2006 that ithe CBN had apportioned $7billion out of the nation’s external reserves, which stood at $38.07 billion as at the end of July, 2006, to 14 global asset managers and their 14 Nigerian banks local partners, to manage.

The amount reportedly bequeathed to the asset managers represented 18.39 per cent of the total external reserves and was hitherto kept with foreign banks.

The 14 global asset managers and their local counterparts were Black Rock and Union Bank of Nigeria Plc; J.P. Morgan Chase and Zenith Bank Plc; H.S.B.C and; First Bank of Nigeria Plc; BNP Paribas and Intercontinental Bank Plc; UBS and United Bank for Africa Plc; Credit Suisse and IBTC Chartered Bank Plc; Morgan Stanley and Guaranty Trust Bank Plc; Fortis and Bank PHB Plc; Investec and Fidelity Bank Plc; ABN Amro and Access Bank Plc; Cominvest and Oceanic Bank Plc; ING and Ecobank Plc; Bank of New York and Stanbic Bank Plc and; Crown Agents and Diamond Bank Plc.

According to THISDAY, CBN gave each asset manager, $500m of the external reserves to manage.

Almost nine years after this pronouncement was made, Nigerians are yet to be informed if the $500 million given to each bank totaling the $7 billion has been repaid to the foreign reserve or the approved condition of management vis-a-vis repayment period.

CSNAC is therefore, by this letter, requesting in accordance with the Section 2, 3, 4 of the Freedom of Information Act, 2011, for the status of the $7 billion ‘soft loan’ granted to the aforementioned 14 consortium of bankers.

We look forward to receiving these information promptly and, in any event, within 7 days of the receipt of this application as provided for in the Freedom of Information Act, 2011.
Sincerely,

Olanrewaju Suraju

Chairman