CBN Combs Accounts, Debits Beneficiaries to Recover COVID-19 Loans as Debtors Recount Experiences

CBN Combs Accounts, Debits Beneficiaries to Recover COVID-19 Loans as Debtors Recount Experiences

  • The Central Bank of Nigeria is on a massive drive to recover about N500,000 COVID-19 loans
  • The CBN is beginning to comb beneficiaries' bank accounts in a recovery process
  • CBN's microfinance bank, NIRSAL said it disbursed about N503 billion under the Targeted Credit Facilities (TCF) scheme in 2020

The Central Bank of Nigeria (CBN) is set to recover loans it granted to some Nigerians to cushion the impact of COVID-19.

According to the News Agency of Nigeria (NAN), the apex bank is targeting beneficiaries of Targeted Credit Facilities (TCF) it granted to some Nigerians in 2020 to reduce the economic impact of COVID-19.

Covid-19 loans, CBN loans, NIRSAL
CBN begins recovery of COVID-19 loans Credit: JGI/Jamie Grill "For illustration purposes only. Depicted person has no relationship to events described in this material."
Source: Getty Images

Beneficiaries caught off guard, complain of arbitrary deductions

Some of the beneficiaries, who were caught unaware, expressed displeasure with how the CBN handles the loan recovery.

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NAN reports that one Fatimah Alli said that the sudden push by CBN to recover the N500,000 COVID-19 loan granted to her had worsened her financial plight.

She said she received a loan of N500,000 in 2020 to cushion the effect of the COVID-19 pandemic. She was assured that beneficiaries would not be required to repay the loan but recently, CBN wiped off all the funds in her bank account as part of the loan recovery process.

Another debtor, Abbas Sule, revealed that he was debited arbitrarily by CBN in a move to recover the N500,000 loan.

According to Sule, he paid N50,000 to a NIRSAL Microfinance Bank (NMFB) staff before the loan was released to him.

He expressed concern about how the CBN would ask him to repay the entire N500,000 loan when he only got N450,000.

Did NIRSAL notify loan beneficiaries to repay

NIRSAL Microfinance Bank recently called the loan beneficiaries across the country to repay them.

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The apex bank disbursed about N50 billion under the Targeted Credit Facilities (TCF) to support households and businesses to survive the harsh economic realities of the COVID-19 pandemic, which ravaged economies across the globe.

CBN disbursed the loans to beneficiaries via its Microfinance Bank, NIRSAL, at an interest rate of five per cent with a suspended period until February 28, 2021.

CBN says it disbursed N503 Billion to 881,81 beneficiaries

At the end of the moratorium, the interest rate on the loan reverted to nine per cent from March 1, 2021.

NIRSAL revealed on social media that the loan beneficiaries must play their part in repaying the loan, adding that it disbursed about N503 billion to over 881,081 Nigerians and businesses nationwide during the COVID-19 pandemic.

It asked beneficiaries to begin the repayment processes immediately

You must ensure that your loan account is continuously funded," NIRSAL said.

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Tinubu gives marching order to recover loan reported that President Bola Tinubu gave marching orders to security agencies to embark on aggressive recovery of the CBN's Anchor Borrowers' Programme granted under the former Governor of CBN, Godwin Emefiele.

The President reportedly gave the security agencies September 18, 2023 as deadline to recover the N1.1 trillion Anchor Borrowers' programme.

CBN stated that a little over N500 billion of the loan has been repaid by farmers, leaving over N500 billion.

CBN, NMfB embark on massive loan recovery, combs debtors’ accounts reported that Nigeria's apex bank, the Central Bank of Nigeria (CBN), in partnership with NIRSAL Microfinance (NMfB), has begun recovering their loans from defaulting Nigerians.

The Nation reported that on Friday, October 28, 2022, many Nigerians noticed debit alerts from their banks, including their dependents whose Bank Verification Numbers (BVN) are linked to their accounts.

NMfB began the recovery of loan facilities granted to Nigerians under the Targeted Credit Facility (TCF) and the Agric, Small Medium Enterprises Scheme (AGSMEIS).


Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner.

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