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Senator dares EFCC over ‘N1.2bn NEXIM loan

Chairman, Senate Committee on Niger Delta Affairs, Senator Peter Nwaoboshi, PDP – Delta North, has asked the Economic and Financial Crimes Commission, EFCC, to provide evidence that he took a loan of N1.2 billion from the Nigerian Export-Import Bank, NEXIM.

EFCC had claimed that Nwaoboshi secured a N1.2billion loan in 2014 under the Local Industrial Growth Scheme, when he was sitting on the Board of Directors of NEXIM Bank, alleging that part of N1.2billion facility was diverted for other use other than what it was granted for.

Reacting, Nwaoboshi said, “I didn’t take a loan of N1.2bn. I challenge EFCC to show the documents that I Peter Nwaoboshi took a loan of N1.2 billion. The company in question has Nigerian and Chinese directors. It is a manufacturing company. They approached NEXIM bank to take a loan of N1.2 billion.

“Because I know some of the directors, I excused myself from participating in the process in accordance with the law. It was the Deputy Governor of CBN who was the chairman of the board.

“The minutes of the board meeting are there. I told the board to excuse me and they did. The company offered a security valued at N3.5 billion as collateral. The records are there.

“The company in question provided documents verified by the bank that they were given a contract of N1.9 billion. The loan was for running cost, purchase of equipment and raw materials. This was verified by the bank. The bank went to Delta State and verified that the contract was given.

“The tenure of the loan was for a period of five years. It means it will expire in 2019. The company domiciled the payment of that contract to NEXIM Bank and the Delta State Government has been paying the money into this account in the bank, including the one they paid just last week.

“Where now lies the diversion. Even if the money was diverted without conceding, NEXIM Bank will return after five years and recover their money. Where now lies the offence?

“For the records, the Delta State Government does not pay through the company. They pay directly to the bank. EFCC has written to Delta State Government and they have been told that no offence was committed.

“The bank never complained to EFCC. EFCC on its own is pushing for this case because they think we are supporting some people. In any business I transact, I try as much as possible to move within the law. I am a free man, I am a lawmaker, I don’t break the law.

“I am a little bit hesitant to speak further on the matter because EFCC has not actually come out to say that they are behind the stories flying around. The facts are in NEXIM Bank. The Profoma invoice for the execution of thee contract is in the bank; they are verifiable.


“What the law requires you is to pay the loan and at the end of the tenure of the loan facility, the bank calls for the loan and interest. If you cannot pay, the bank will refer to the security. The loan still has two year period to go.”
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