Reps Grill Bank, Transport Ministry Over N500m ECOWAS Road Fund

The House of Representatives, on Monday, intensified its probe into the alleged mismanagement and diversion of N500 million earmarked for the ECOWAS Inter-State Road Transit (ISRT) scheme by the Federal Ministry of Transportation and the Nigerian Export-Import Bank (NEXIM).

During a public hearing of the House Committee on Public Accounts, chaired by Hon. Bamidele Salam, lawmakers demanded detailed documentation from both the Ministry and NEXIM Bank within two weeks to clarify the fund’s current status and usage.

The investigation follows an audit query raised by the Office of the Auditor General for the Federation (oAuGF), which flagged concerns about the transparency and operational existence of the ECOWAS/ISRT scheme.

In his defense, NEXIM Managing Director, Abba Bello, explained that the bank was appointed in 1998 as Nigeria’s national guarantor for the ECOWAS road transit facility. The scheme is designed to facilitate cross-border movement of goods within the region by eliminating delays and border bottlenecks through a system of guarantees rather than escorts.

Bello noted that the ISRT fund has been domiciled with NEXIM since 2015, with the bank receiving a total of N500 million in five tranches from the Federal Ministry of Transportation between 2016 and 2024. Of this amount, he said NEXIM has invested a large portion in Treasury Bills and Money Market instruments to grow the fund.

According to him, the current balance stands at N539.5 million as of April 30, 2025, with N161.2 million earned as investment income and N121.9 million spent on scheme-related activities, including stakeholder engagements and international travel.

However, a document submitted to the committee revealed that although the ISRT scheme was officially launched in 2000 at the Seme Border in Lagos, funding did not commence until 2016, 16 years later.

The report also showed that while NEXIM was expected to receive a total of N500 million as the initial seed fund (equivalent to $4.76 million at the 2000 exchange rate of N105/$), only N400 million has so far been confirmed by the Auditor-General’s office as transferred.

Despite the detailed figures provided by NEXIM, lawmakers expressed concern that there was no concrete evidence the ISRT scheme is operational. The audit report warned of risks involving the potential loss and diversion of public funds due to the lack of clarity and accountability.

The oAuGF, therefore, directed the Permanent Secretary of the Ministry of Transportation to present evidence that the ECOWAS/ISRT project is not only functional but also in active implementation. In addition, the ministry was instructed to recover and remit the N400 million to the Treasury and submit proof of remittance to the National Assembly.

Chairman Salam stressed the need for transparency and compliance, giving both the NEXIM boss and the ministry’s Permanent Secretary a 14-day deadline to submit all relevant documents or face further legislative action.