The House of Representatives has directed the Central Bank of Nigeria, NIRSAL, and SMEDAN to restructure the repayment system for the recovery of the COVID-19 loans from Nigerians who took the facility.
It also wants interest rates reduced, an extension of the repayment period, and a more flexible process so that small businesses do not collapse.
The lawmakers made the call recently following public outcry by Nigerians who complained that their accounts were being emptied.
The lawmakers also urged the Ministry of Finance to suspend all forced recoveries and consider waiving loans for low-income earners and small business owners.
According to Saidu Abdullahi, who moved the motion, many people genuinely cannot repay these loans due to current economic hardship.
Following complaints that accounts were being emptied, some stakeholders have urged the CBN and NIRSAL Microfinance Bank to furnish Nigerians with records of the COVID-19 loans.
They made the call in an interview on Tuesday in Abuja.
In 2020, the federal government established a Targeted Credit Facility to cushion the economic effects of the COVID-19 pandemic on Nigerians and small businesses.
The stakeholders claimed that the total amount disbursed in loans and the amount recovered had been kept secret.
Checks revealed that the TCF was created by the CBN and disbursed by NMFB, an affiliate of the apex bank. Available records show that a total of about N419.42 billion was disbursed to 792,936 beneficiaries, comprising households and small businesses.
Some beneficiaries of the loans had, however, complained that their bank savings were being eroded without authorisation.
According to economist Bola Adeola, COVID-19 loan recovery statistics are still unavailable. Mr Adeola said that many beneficiaries had defaulted on loan repayments.
“Auto-debits only began recently for COVID-19 loans. Accountability remains a myth,” he said.
Policy analyst Seidu Yusuf said that many people had only recently noticed money being taken from their bank accounts by NFMB, which 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,” he said.
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.
