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.
Beneficiaries speak
Speaking to NAN, Abbas Sule a beneficiary of the loan 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.”
What you should know
The CBN introduced the N50 billion TCF in March 2020 to support households and Micro, Small, and Medium-sized Enterprises (MSMEs) that were severely impacted by COVID-19.
These loans were disbursed to beneficiaries by NIRSAL, an entity owned by CBN, at a favourable interest rate of 5%, with a moratorium period that extended until February 28, 2021.
After the moratorium period ended, the interest rate reverted to nine per cent from March 1, 2021.
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.”
As the CBN moves forward with loan recovery efforts, beneficiaries like Fatimah Alli and Abbas Sule hope for a more transparent and equitable resolution to their concerns regarding the repayment process.