The Central Bank of Nigeria (CBN) has commenced the process of loan recovery from certain groups of Nigerians who benefited from financial support during the challenging socio-economic climate brought about by the COVID-19 pandemic.

The loans in question are part of the Targeted Credit Facilities (TCF) initiative, which the CBN extended to selected Nigerians in 2020 to mitigate the economic impact of the pandemic. However, some recipients of these loans have raised concerns about the way the repayment process is unfolding.

Among those affected is Fatimah Alli, who received a loan of N500,000 in 2020 to alleviate the economic strains caused by COVID-19. She expressed her distress at the sudden demand for repayment, stating, “When we initially obtained the loan, we were assured that repayment would not be required. However, recently, the CBN withdrew all the funds from my bank account as part of their loan recovery efforts, which has exacerbated my financial difficulties.”

Abbas Sule, another beneficiary of the TCF, echoed these sentiments, citing arbitrary deductions from his bank account. He explained, “When I received the loan facility in 2020, the bank official who processed it through NIRSAL Microfinance Bank (NMFB) received a commission of N50,000, leaving me with N450,000. Now they are asking me to repay the full N500,000, which I believe is unjust.”

The News Agency of Nigeria (NAN) reports that NMFB recently initiated the call for the repayment of COVID-19 loans disbursed to households and business operators nationwide.

To provide context, the CBN introduced the N50 billion TCF in March 2020 to offer support to households and Micro, Small, and Medium-sized Enterprises (MSMEs) severely impacted by the pandemic. The loans, disbursed by NIRSAL, an entity owned by the CBN, carried a modest interest rate of five percent and featured a moratorium period that extended until February 28, 2021. After the moratorium ended, the interest rate on the facility increased to nine percent, effective March 1, 2021.

In a message posted on its official Twitter handle, NMFB stated, “We have fulfilled our part. It is now your turn.” The microfinance bank disclosed that it disbursed loans totaling N503 billion to over 881,081 Nigerians and business operators to alleviate the pandemic’s impact. NMFB urged loan recipients to take the necessary steps to repay the loans, emphasizing that these funds were not distributed as grants. The institution also encouraged borrowers to visit the nearest NIRSAL branch to obtain a loan repayment schedule and maintain adequate funds in their loan accounts.

As loan repayment efforts continue, beneficiaries and relevant authorities will need to engage in a constructive dialogue to address concerns and ensure a fair and equitable resolution to this matter.