House of Representatives in Session

Lawmakers uncover N300bn ‘hanging funds’ in banks as Nigeria goes a borrowing

*Federal legislators have bemoaned a situation the country goes a borrowing to fund budget but has over N1trillion hanging in banks would not augur well for the economy

Alexander Davis | ConsumerConnect

The House of Representatives ad hoc committee in the National Assembly (NASS) on unclaimed funds in commercial banks in Nigeria, has stated it uncovered over N300billion unclaimed funds in the country’s financial institutions.

ConsumerConnect reports Hon. Idem, Chairman of the House Committee, who disclosed this development Wednesday, March 30, 2022, in Abuja, FCT, said that the amount represented a fraction of unclaimed funds in the commercial banks in the West African country.

The Federal lawmaker noted that the money could be described as “hanging funds” emanating from failed transactions by government agencies and banks.

Idem further stated the committee was saddled with the responsibility of recovering N1.2trillion which had been hanging in the banks across Nigeria.

According to him, about N300billion was discovered March 29 from banks and government agencies.

The ad hoc committee is still scrutinising documents and reports sent to it by banks and government agencies, he said.

The legislator said that the measure would help the committee to recover more funds from the affected institutions.

Idem also stated:

“The commercial banks are regulated by government, and they cannot refuse us.

“This assignment is crucial. We will not allow any government agency or commercial bank to undermine our power.

“If the commercial banks fail to appear the next line of action will be to summon them.”

The lawmaker noted that a situation in which the country goes to borrow money to fund its budget when it has over N1trillion hanging in banks would not augur well for the economy.

If the money in the banks is recovered, it would go a long way to help the country from borrowing, said he.

Citi Bank earlier appeared before the committee but was told to go and reconciled its documents and report back, agency report said.

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