CBN’s Loan Recovery Sparks Concern Among COVID-19 Loan Beneficiaries: “Not Fair,” Say Recipients

By: JP Ashedzi

Beneficiaries of CBN COVID-19 loans have expressed concern over CBN’s latest move to recover those loans from them.

The Central Bank of Nigeria (CBN) initiated a loan recovery process for funds disbursed as part of the Targeted Credit Facilities (TCF) in 2020.

These loans were provided to aid Nigerians in mitigating the economic impact of the COVID-19 pandemic, as reported by the News Agency of Nigeria.

A beneficiary of the loan Abbas Sule said, “When I was granted the loan facility in 2020, the bank official that processed the release through NIRSAL Microfinance Bank (NMFB) received a commission of N50,000, and I was paid N450,000.”
“Now they want me to repay N500,000, that is not fair.”
Fatimah Alli, another beneficiary of the TCF, shared her experience, stating,

“I got a loan of N500,000 in 2020 to cushion the economic effect of COVID-19. But at that time, we were assured that we would not be required to repay the money.”
“Recently, all the money in my bank account was removed by the CBN as part of the loan recovery drive.”

In an official statement posted on NMFB’s Twitter handle, the bank stated, “We have played our part. It is now your turn.”
NMFB revealed that it had disbursed loans worth N503 billion to more than 881,081 Nigerians and business operators to cushion the effects of the pandemic.

It emphasized that these loans were not grants and urged beneficiaries to take the necessary steps to repay them. The bank advised, “You are expected to visit the nearest NIRSAL branch to obtain a loan repayment schedule. You must ensure that your loan account is always funded.”