The House of Representatives has directed the Central Bank of Nigeria (CBN), NIRSAL, and SMEDAN to restructure the repayment system for recovery of the COVID-19 loans from Nigerians who took the facility.
![](https://thenigerialawyer.com/wp-content/uploads/2024/11/TheNigerialawyer-WhatsApp-Channel1.jpg")
It also wants the interest rates reduced, as well as an extension of the repayment time, and makes the process more flexible so that small businesses do not collapse.
The House made the call recently following public outcry by Nigerians who took the loan that their accounts were being emptied.
The lawmakers also urged the Ministry of Finance to suspend all forceful recoveries and even consider waiving the loans for low-income earners and small business owners.
According to Rep. Saidu Abdullahi, who moved the motion, many people genuinely cannot repay these loans because of the current economic hardship.
Following complaints by people who said that their accounts were being emptied, some stakeholders have urged the CBN and NIRSAL Microfinance Bank (NMFB) to furnish Nigerians with the record of the COVID-19 loans.
They made the call in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.
NAN reports that in 2020, the federal government had established a Targeted Credit Facility (TCF) to cushion the economic effect of the COVID-19 pandemic on Nigerians and small businesses.
The stakeholders claimed that the total amount given out in loans and the amount recovered had been shrouded in secrecy.
Findings revealed that the TCF was created by the CBN and disbursed by NMFB, which is affiliated to the apex bank.
The available record shows that a total sum of about N419.42 billion was disbursed to 792,936 beneficiaries, consisting of households and small businesses.
Some beneficiaries of the loans had, however, complained that their bank savings were being eroded without authorisation.
According to an economist, Bola Adeola, COVID-19 loan recovery statistics are still unavailable.
Adeola said that many beneficiaries defaulted in the repayment of the loans.
“Auto-debits only began recently for COVID-19 loans. Accountability remains a myth,” he said.
A policy analyst, Mr Seidu Yusuf, said that many people just noticed money being taken from their bank accounts by NFMB, and it had caused a lot of confusion.
“Most of these deductions are for COVID‑19 intervention loans under the TCF.
“Some people thought this money was a free grant, but it is actually a loan that must be paid back.
“If the loan is not fully repaid on time, NIRSAL can automatically take money from any account linked to your BVN.”
Emannuel Owen, a banker, said that many people collected the COVID-19 and NIRSAL loans without having real plans for the money.
According to him, they spent it anyhow, without thinking about repayment. Now, for years, their accounts have been debited, and they are angry and frustrated.
An official of the CBN, who spoke on the condition of anonymity, said that NIRSAL was in charge of disbursement and recovery of the loans.
According to him, it is difficult to know exactly how much has been recovered, but they are recovering.
He said that 62 per cent of N419 billion, the total sum that was disbursed under the TFC, was underperforming.
He said that N41 billion had been repaid, while ₦261 billion remains in default as non-performing loans.
“N116 billion is still in the system, being paid or restructured.
“The only thing they need is your BVN to enable them to access all your bank accounts. A lot of the beneficiaries thought that they would not pay back the loans,” he said. (NAN)
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
The book, titled The Law of Torts in Nigeria: A Functional Approach, authored by Professor Hagler Sunny Okorie Ph.D and Ikeocha, Nathaniel Ngozi Esq, offers law students, practitioners, and academics a comprehensive guide to understanding and applying tort law in Nigerian courts. Interested buyers can place orders via the following contact numbers: 08028636615, 08037667945, 08032253813, or +234 902 196 2209.
_______________________________________________________________________
ARTIFICIAL INTELLIGENCE FOR LAWYERS: A COMPREHENSIVE GUIDE
Reimagine your practice with the power of AI “...this is the only Nigerian book I know of on the topic.” — Ohio Books Ltd
Authored by Ben Ijeoma Adigwe, Esq., ACIArb (UK), LL.M, Dip. in Artificial Intelligence, Director, Delta State Ministry of Justice, Asaba, Nigeria.
Bonus:
Get a FREE eBook titled “How to Use the AI in Legalpedia and Law Pavilion” with every purchase.
How to Order: 📞 Call, Text, or WhatsApp: 08034917063 | 07055285878 📧 Email: benadigwe1@gmail.com 🌐 Website: www.benadigwe.com
Ebook Version: Access directly online at: https://selar.com/prv626
________________________________________________________________________ The Law And Practice Of Redundancy In Nigeria: A Practitioner’s Guide, Authored By A Labour & Employment Law Expert Bimbo Atilola
_______________________________________________________________________
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
