CBN Begins COVID-19 Loan Recovery As Beneficiaries Are Caught off-guard

CBN Begins COVID-19 Loan Recovery As Beneficiaries Are Caught off-guard

The Central Bank of Nigeria (CBN) is set to recover loans granted to some Nigerians to ameliorate harsh socio-economic realities. The loan initiative involved is the Targeted Credit Facilities (TCF), granted to them in 2020 to cushion the economic effect of COVID-19.

CBN has previously disclosed that it had launched a loan recovery scheme under the Anchor Borrowers’ Programme which will be primarily focused on rice farming.

NMFB recently called for the repayment of COVID-19 loans given to households and business operators nationwide.

Beneficiaries have claimed that the sudden move by CBN to recover the COVID-19 loan had worsened their financial challenges, stating that they borrowed the loan in 2020 to cushion the effect economic effect of COVID-19. But at that time, they were assured that they would not be required to repay the money.

But recently, all the money in their bank account was removed by the CBN as part of the loan recovery drive.

In March 2020, the CBN introduced the N50 billion TCF to support households and Micro, Small, and Medium-sized enterprises (MSMEs) that have been particularly hit hard by COVID-19.

The loans were disbursed to beneficiaries by NIRSAL, an entity owned by CBN, at an interest rate of five percent with a moratorium period from February 28, 2021.

At the moratorium’s expiration, the facility’s interest rate reverts to nine percent from March 1, 2021.

“We have played our part. It is now your turn,” NMFB said on its official Twitter handle,

The MFB revealed that it had given out loans worth N503 billion to more than 881,081 Nigerians and business operators to cushion the effects of the pandemic.

It urged beneficiaries to take steps to repay the loans, as they were not given as grants.