Senate Wants CBN to Let Go N188bn COVID-19 Loan

A senate ad-hoc committee has urged the Central Bank of Nigeria and NIRSAL Micro Finance Bank to let go of the recovery of credits given to Nigerians under the Targeted Credit Facility.

The Targeted Credit Facility disbursed by NIRSAL MFB and supervised by the CBN is amounting to about N188 billion given to Nigerians as soft loans during the COVID-19 pandemic to mitigate the hardships suffered by individuals and businesses from loss of revenue and income.

Upon allegations of uneven disposal of loans, grants, and interventions in the six-geopolitical regions, NIRSAL MFB was summoned to appear before the Senate ad hoc committee investigating the allegations.

After the NIRSAL MFB’s presentation, where they gave an explanation on how the loan was disbursed, the senator representing Ondo Central Senatorial District, Ayo Akinyelure, stated that NISRAL had given out the loan as grant to the beneficiaries.

The senator stressed that the N188 billion loan was difficult to recover hence another loan should be arranged to be disbursed to Nigerians who can pay back the loan.

“since recovering this money will be difficult for NISRAL MFB, because of the time it was disbursed, let’s request that CBN should give them fresh funding so they can be able to give it out to persons that they can recover the money from.”

The senator also suggested that agencies under CBN like NIRSAL MFB should have their functions spelt exclusively so as not to have clash of functions with the apex bank.

“Creations like this (NIRSAL MFB) should try and be differentiated from the CBN, as the CBN stands as a regulator for the financial sector. And I don’t see why it will put itself in work with micro and macro sectors of the economy. I don’t think it is wise for us”.

He further called for continued funding for the NIRSAL MFB for small business owners to access quick and affordable loans without stringent conditions.