The Petroleum Equalization Fund, PEF, and the 7bn dollars bailout fund that the Obasanjo administration granted commercial banks in the country.
You remember that in 2006, when Charles Soludo was governor of the Central Bank of Nigeria, CBN, a bailout fund of 7bn dollars was given out to commercial banks for recapitalization.
This was not money dashed to the banks, the banks were loaned these funds and they were supposed to return this money to the Federal Government, but as we write, 2020, 14 years after, this particular money has not been returned.
In the course of our investigations into why this money was not returned.. Central Bank revealed that the Board of CBN met sometime in 2006 and wrote off the money. And of course, that was not made public.
A concerned source said “It is absurd to hear this, but the truth is that money belonging to you all Nigerians, was taken and handed over to a few well-placed persons, who traded with the money, through their privately owned commercial banks and then got their cronies to sit in whatever board and wrote off this bailout.
A source said of the development
“Even the CBN and the NDIC that are supposed to regulate them have become helpless because the banks have been able to pocket their officials to the extent that rather than the CBN regulating the banks, it is the banks are “supervising” the regulators. This sounds bizarre and strange, but that is the truth.
Financial experts are of the view that, the anti-corruption war has to start from the banking sector.”