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Beneficiaries of CBN’s covid-19 loans worry over CBN loan recovery effort



Beneficiaries of CBN COVID-19 loans have expressed concern over CBN’s latest move to recover those loans from them.

The Central Bank of Nigeria (CBN) initiated a loan recovery process for funds disbursed as part of the Targeted Credit Facilities (TCF) in 2020.

These loans were provided to aid Nigerians in mitigating the economic impact of the COVID-19 pandemic, as reported by the News Agency of Nigeria.

Speaking to NAN, Abbas Sule a beneficiary of the loan said,

Fatimah Alli, another beneficiary of the TCF, shared her experience, stating,

The CBN introduced the N50 billion TCF in March 2020 to support households and Micro, Small, and Medium-sized Enterprises (MSMEs) that were severely impacted by COVID-19.

These loans were disbursed to beneficiaries by NIRSAL, an entity owned by CBN, at a favourable interest rate of 5%, with a moratorium period that extended until February 28, 2021.

After the moratorium period ended, the interest rate reverted to nine per cent from March 1, 2021.

In an official statement posted on NMFB’s Twitter handle, the bank stated,

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

It emphasized that these loans were not grants and urged beneficiaries to take the necessary steps to repay them.

The bank advised,

As the CBN moves forward with loan recovery efforts, beneficiaries like Fatimah Alli and Abbas Sule hope for a more transparent and equitable resolution to their concerns regarding the repayment process.