Reps urge FG to stop deductions, cancel COVID-19 loans for vulnerable Nigerians
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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.”
He added, “The House is concerned that recent CBN surveys show rising default rates across households and enterprise lending in Q4 2024 and Q2 2025, driven by inflation above 24%, severe food insecurity, loss of purchasing power, business closures, and shrinking household incomes.”
Abdullahi further noted, “We believe that despite the high default figures reported in 2023, substantial recoveries have been made through the unplanned automatic deductions from beneficiaries’ bank accounts between late 2023 and December 2025.
“This suggests that the current outstanding exposure may be significantly lower and therefore fiscally manageable for a structured waiver.”
He reminded lawmakers of the purpose of the intervention, saying, “The House recognises that the COVID-19 TCF was fundamentally a survival support loan, not a conventional business facility, as many households used the funds for essential needs such as food, shelter, healthcare, and school fees during the lockdown, making repayment unrealistic for those who have not recovered economically.”
The lawmaker also referenced previous government leniency, stating, “Nigeria has a strong domestic precedent of leniency in the Anchor Borrowers Programme, where, despite its commercial nature and a default rate exceeding 50%, the Federal Government has repeatedly provided restructuring and partial waivers.”
He explained that waivers on pandemic-era support were in line with international practice, noting that countries including the United States, Canada, Germany, South Africa, and India had waived significant portions of their COVID-19 relief loans or granted extended moratoriums.
Justifying his call for relief, Abdullahi said, “The continued automatic debits and aggressive recoveries are inflicting severe hardship on vulnerable Nigerians, risking the collapse of small businesses, worsening unemployment, and heightening social instability.”
Dirisu, has over 12 years experience covering political parties, National Assembly, sports, transportation, etc, and currently works with The PUNCH
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