The Nigerian House of Representatives has urged the Federal Government to cancel the outstanding COVID‑19 survival loans granted to vulnerable households and small businesses, and to restructure the Small and Medium Enterprises (SME) component of the loan programme. This call follows a motion presented by Hon. Musa Saidu Abdullahi of Niger State, which highlighted the difficulties beneficiaries face in repaying the loans.
The COVID‑19 Targeted Credit Facility was created by the Federal Government during the pandemic, disbursing N419.42 billion to support affected households and small businesses. The programme reached 792,936 beneficiaries—674,972 households and 117,964 small businesses—with women accounting for 45 % of those supported. It helped create or sustain approximately 1.58 million jobs during the crisis. However, by September 2023, N261.07 billion (about 62 %) of the loans remained unpaid, leaving a total outstanding balance of N378.03 billion.
According to Abdullahi, recent surveys by the Central Bank of Nigeria (CBN) show that loan defaults are rising due to high inflation, food insecurity, reduced incomes and business closures. He argued that repayment has become unrealistic for many beneficiaries, emphasizing that the COVID‑19 loan was intended as survival support, not a regular business loan. Many households used the funds for essential expenses such as food, rent, healthcare and school fees during the lockdown.
The lawmaker drew parallels with the Anchor Borrowers Programme, where loans were restructured or partially waived, and cited examples from the United States, Canada, Germany, South Africa and India, which waived portions of their COVID‑19 relief loans in recognition of the unprecedented hardship caused by the pandemic. Abdullahi warned that continued automatic deductions are worsening the suffering of vulnerable Nigerians, risking the collapse of small businesses, increased unemployment and social instability.
The House of Representatives has asked the Federal Government, the CBN, NIRSAL Microfinance Bank and the Ministry of Finance to halt all deductions from beneficiaries’ accounts. The aim is to provide relief to struggling households and small businesses, acknowledging the significant challenges they face in repaying the loans. This decision underscores the need for a more nuanced approach to loan recovery, taking into account the extraordinary circumstances of the pandemic and its lingering impact on the economy.
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