Nigerians React After Unexpected COVID-19 Loan Debits Hit Bank Accounts: “We Were Told It Was Grant”
- Nigerians have expressed outrage after unexpected COVID-19 loan deductions hit accounts
- Many who spoke with Legit.ng claimed they have been misled, believing pandemic funds were grants
- Concerns have also risen over bank and BVN misuse affecting people who have never applied
Many Nigerians have reacted with shock and outrage following reports of unexpected deductions from their bank accounts over COVID-19 loans disbursed by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) since 2020.
Source: Getty Images
Findings by Legit.ng indicate that thousands of Nigerians collected the COVID-19 intervention loans during the pandemic but did not repay them for years, with many believing the funds were government grants rather than repayable loans.
However, NIRSAL has now begun aggressive recovery, leading to debit alerts hitting bank accounts nationwide.
Some affected Nigerians who spoke to Legit.ng alleged that facilitators and agents who introduced the scheme misled citizens by describing the funds as “free money” meant to cushion the effects of the COVID-19 lockdown.
Many said they only became aware it was a loan after receiving debit alerts.
Beneficiaries react to unexpected NIRSAL loan deductions
According to multiple accounts obtained by Legit.ng, deductions reportedly began as early as March this year but became more frequent around November and December, catching beneficiaries unprepared.
While some Nigerians admitted that many people knowingly collected the loans and ignored repayment obligations, others insisted they never applied for the funds at all, raising serious concerns about alleged BVN misuse and bank lapses.
A Lagos-based fashion designer, Toyin, told Legit.ng that she was shocked when she received repeated debit alerts late last year.
“We were told clearly that it was a grant to help small businesses survive COVID. Nobody talked about repayment. I started seeing deductions from November and December, and that was when I realised it was a loan,” she said.
Another affected Nigerian, a poultry farmer in Ogun state, said he was never properly informed about the loan terms.
“They just helped us fill out forms and said the government wanted to empower us. If we knew it was a loan, many of us would not have taken it,” he told Legit.ng.
Some Nigerians, however, admitted that many beneficiaries knowingly collected the loans but failed to repay them over the years.
A civil servant in Abuja told Legit.ng that the government was within its rights to recover the funds.
“People collected the money and ignored it for years because nothing happened. Now that deductions have started, everybody is shouting. It was clearly a loan,” he said.
Citizens question banks as loans hit accounts
Reacting on social media and monitored by Legit.ng, a Nigerian, Juliet Bright, claimed that her sister was affected despite not having collected the loan.
Source: Getty Images
“My sis didn't collect that loan. But they deducted 100k from her account that she is still owing 1m naira. Till now they are still trying to trace who collected that loan through her BVN,” she said.
Another Nigerian, Abidah Favour, shared a similar experience, saying she was eventually shown details of another person who allegedly received the loan linked to her BVN.
“Juliet Bright, this same thing happened to me. I went to their office, and they gave me a breakdown and the name of the person who received the loan,” she said.
The situation has sparked questions about banking verification processes. Reacting to the development, Fizzy Banty wrote:
“Wahala. That means bank staff can just use a customer's BVN to collect loan without the customer's knowledge? Thought there should be OTP or something to verify.”
Another affected Nigerian, Boma Adangor, said legal action helped resolve her case.
“Juliet Bright, Same thing happened to me last year. I used a Lawyer, wrote a petition to EFCC. The suspect paid the money,” she stated.
A lawyer, Nuelly Tuks, also shared details of a case involving one of his clients, alleging serious negligence on the part of a bank.
“My client was debited 125k. She never collected any loan, but when she got to the bank, she was told it's COVID-19 loan... Lol,” he said.
He added: “Someone used her BVN to open a different account in her full name to collect 450k of that loan... I went to bank served them a Demand letter to refund that money and a Pre-action Notice of intention to sue... How can a bank be this reckless and careless? A different customer used another customer's BVN to open a totally different account using the person's full name? Lol .. if we go to court, nah 500M we go first request for.”
Another Nigerian, Jude Ohaekelem, suggested that political actors may have unknowingly drawn people into the scheme.
“Some people entered this loan wahala unknowingly, some politicians gave out the forms to their people in the name of empowerment, not knowing it wasn't free money,” he said.
Journalist petitions EFCC, CBN over NIRSAL loan
In a related development, Legit.ng reported that Ibadan‑based journalist Musliudeen Adebayo has petitioned the Economic and Financial Crimes Commission (EFCC), Central Bank of Nigeria (CBN), and the Public Complaints Commission (PCC) over alleged arbitrary loan interest deductions by NIRSAL Microfinance Bank.
Adebayo said the ₦180,000 he received during the COVID‑19 pandemic was presented as a grant but later treated as a loan, with interest rising from 15 per cent to 25 per cent even after he says he fully repaid the principal and initial interest.
He urged the agencies to intervene and compel the bank to stop further deductions and allow closure of his account, saying repeated attempts to resolve the matter amicably have failed.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
