Nigerians refuse to pay N261 billion COVID-19 loans owed to CBN

A significant portion of the funds disbursed through the targeted credit facility (TCF) by the Central Bank of Nigeria (CBN) and NIRSAL Microfinance Bank (NMfB) remains unpaid.

Out of the total amount of N419.42 billion allocated, Nigerian beneficiaries have yet to repay N261.07 billion.

Launched in April 2020, the TCF was designed to mitigate the adverse economic impact of the COVID-19 pandemic on both households and small to medium-sized enterprises (SMEs).

However, Legit.ng had reported that the CBN, in partnership with (NMfB), has begun recovering their loans from defaulting Nigerians.

Loans generated thousands of jobs

As per a statement from the CBN, the facility has generated 1,585,872 direct and indirect employment opportunities, making a notable contribution to Nigeria's employment sector.

According to DailyTrust, the document further highlights that out of the total disbursement of N419.42 billion, principal repayments total approximately N41.39 billion, accompanied by interest repayments of around N174.60 million.

However, there remains a substantial outstanding balance of about N378.03 billion, with an overdue amount of N261.07 billion, signalling that a considerable number of beneficiaries have fallen behind on their repayment obligations.

Beneficiaries each received N2.5 million

According to the document, recipients of the loan, each receiving N2.5 million for SME financing, are classified as 'non-performing,' suggesting difficulties or lapses in repayment.

However, one exception, Centriculture Limited, has been labelled as 'performing' due to its repayment of N1 million.

The document offers several recommendations, including integrating the intervention into the Agri-Business/Small and Medium Enterprise Investment Scheme (AgSMEIS) for improved administration and outcomes.

Additionally, it suggests crafting a well-defined exit strategy that corresponds with the outstanding balance to facilitate the smooth conclusion of the program.

In a recent development, President Bola Tinubu directed commercial banks to begin the process of recovering the loans disbursed to customers to cushion the economic impact of the coronavirus pandemic.