The House of Representatives has urged the Central Bank of Nigeria (CBN), NIRSAL, and SMEDAN to restructure repayment plans for COVID-19 loans, following widespread complaints from Nigerians about unauthorized deductions from their accounts.
Lawmakers recommended:
- Reduced interest rates
- Extended repayment periods
- A more flexible repayment process to prevent small businesses from collapsing
The call follows public outcry from borrowers struggling amid economic hardship. Saidu Abdullahi, who moved the motion, emphasized that many genuinely cannot repay the loans due to the current economic situation.
The House also urged the Ministry of Finance to suspend forced recoveries and consider loan waivers for low-income earners and small businesses. Stakeholders have asked CBN and NIRSAL Microfinance Bank to provide clear recordsof the COVID-19 loans, citing a lack of transparency.
The Targeted Credit Facility (TCF), established in 2020, aimed to cushion the economic impact of COVID-19 on Nigerians. Available data shows N419.42 billion was disbursed to 792,936 beneficiaries, but many complain their bank savings are being eroded without proper authorization.
Economists and policy analysts warn that auto-debits and lack of accountability have caused confusion and frustration among borrowers. Many who assumed the loans were grants are now facing unexpected deductions from accounts linked to their BVN.
