Reps queries National Sugar Council over N9bn dormant funds

*Want funds disbursed to local investors, farmers

The House of Representatives Committee on Industry on Tuesday expressed displeasure over the non-disbursement of over N9 billion by the National Sugar Development Council (NSDC) to investors to reduce the nation’s over-dependence on imported sugar.

The committee made its reservations known when officials of the agency’s appeared before it to defend its 2018 budget proposals.

Executive Secretary of the Council, Latif Busari, had informed the committee that a total of N9.4 billion has been earmarked in the 2018 budget to be deposited in two main development banks, namely the Bank of Industry (BOI) and Bank of Agriculture (BOA) for future investments in the sugar industry.

According to him, the expected investment funds to be lodged in the BOI for the fiscal year would be N5.9 billion while N3.5 billion would also be deposited in the BOA to avoid wastage.

But, bewildered committee members queried the rationale in depositing such huge funds in the two banks instead of giving out loans to potential investors.

According to the committee members, the funds instead of lying unutilized should be loaned to local investors and farmers.

Chairman of the committee, Hon Usani Moriki from Zamfara State said that the aim of the funds would be defeated if they were not disbursed to investors.

“The aim of lodging these monies are defeated since they can’t be used for the purpose they were meant for.
“So, l urge you to look into the issue and identify the problems. These banks are there to fund farmers. Why can’t the funds be given to farmers. You can’t be telling us that giving out these funds are capital intensive,” he stated.

Thereafter, the committee chairman directed the secretary to furnish the committee with details of the funds, investors and what the banks had done within the periods the funds had been in their custody.
Moriki further urged the council to on a monthly basis record the sugar levies collected by Customs and amounts released by the Central Bank of Nigeria and the office of the Accountant-General of the Federation to it.

“Provide this committee a statement of accounts for BOI and BOA investment and provide details of investors who have accessed the loans.

“We need to know if monies meant for sugar development are being sidelined by Customs or CBN”, he stressed.
Responding to the issues, the Executive Secretary, Busari said that the funds were actually meant for big investors who were expected to meet the criteria stipulated by the Council.

He added that most investors who had applied for the funds so far did not meet up the criteria and so couldn’t access the funds.

He said: “The banks charge 5 to 7 percent interest which is very low compare to what is obtainable with others. The delay is because they take their time to ensure that the loan application is properly processed. They conduct technical feasibility and financial viability”.

Also giving insights to why the Council expended the whooping sum of N33 million on adverts in 2017, the Executive Secretary said it was to attract foreign investors.