Reps urge FG to stop deductions, cancel COVID-19 loans for vulnerable Nigerians

The House of Representatives on Wednesday called on the Federal Government to grant a total waiver on outstanding COVID-19 survival loans owed by vulnerable households and micro-businesses across the country.

The House also urged the Federal Government—through the Central Bank of Nigeria, NIRSAL Microfinance Bank, and the Federal Ministry of Finance—to immediately suspend all deductions on COVID-19 intervention loans.

These resolutions followed the adoption of a motion of urgent public importance moved by Saidu Abdullahi, representing Bida/Gbako/Katcha Federal Constituency of Niger State.

During the COVID-19 pandemic, the Federal Government, through the CBN and NIRSAL Microfinance Bank, introduced the Targeted Credit Facility, disbursing ₦419.42bn to households, micro, small, and medium enterprises to cushion the economic impact of the global lockdown.

The programme reached 792,936 beneficiaries, including 674,972 households and 117,964 small businesses, with women accounting for 45% of beneficiaries—about 330,128 women receiving ₦159.21bn.

Abdullahi said, “The TCF was credited with creating or sustaining about 1,585,872 jobs, underscoring its significant impact on livelihoods and enterprise stability during and after the pandemic.”

He raised concern that as of September 2023, “₦261.07bn (about 62%) of the loans remained unpaid, while ₦378.03bn was classified as outstanding, reflecting widespread inability to repay among vulnerable households and micro-enterprises.”(DL/Punch)