By Mercy Gadia Adi
The House of Representatives on Tuesday asked the Federal Government to halt all ongoing deductions from beneficiaries of COVID-19 intervention loans, warning that continued recoveries risk deepening economic hardship among already vulnerable Nigerians.
The resolution followed a motion of urgent public importance moved by Hon. Saudi Abdullahi, who argued that the House must intervene as thousands of households and small businesses remain unable to service the emergency credit extended during the pandemic.
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Presenting his case, Abdullahi recalled that the Federal Government approved ₦419.42 billion under the Targeted Credit Facility (TCF) at the height of the pandemic support disbursed through the Central Bank of Nigeria (CBN) and NIRSAL Microfinance Bank to 792,936 beneficiaries nationwide. Of these, 674,972 were households and 117,964 small businesses, with women accounting for 45% of all recipients, amounting to ₦159.21 billion.
He noted that the facility was widely credited with sustaining about 1.58 million jobs during the lockdown and its immediate aftermath, underscoring its role as a socioeconomic safety net rather than a traditional commercial loan.
Yet, Abdullahi said the repayment outlook has deteriorated sharply. As of September 2023, ₦261.07 billion, 62% of the total loan value remained unpaid, while ₦378.03 billion was classified as outstanding. He warned that rising defaults reported in subsequent CBN surveys reflect inflation above 24%, shrinking incomes, business closures, and worsening food insecurity.
Although beneficiaries have faced unplanned automatic deductions since late 2023, Abdullahi argued that the outstanding exposure is now likely smaller and “fiscally manageable” for government, strengthening the case for a structured waiver.
He added that many recipients deployed the funds for basic survival needs; food, rent, healthcare and school fees, making repayment unrealistic in the absence of meaningful economic recovery. Nigeria, he said, also has domestic precedent for leniency, pointing to repeated restructuring and partial waivers under the Anchor Borrowers Programme despite its commercial nature and high default rate.
He further cited international examples, including the United States, Canada, Germany, South Africa and India, which waived or forgave substantial portions of their pandemic-era loans.
The House, he warned, is “deeply worried” that continued automatic debits threaten to push struggling families and micro-enterprises into deeper distress, risking business failures, job losses and rising social instability.
To cushion the strain on households, lawmakers urged the Federal Government working with the Ministry of Humanitarian Affairs and Poverty Alleviation, Ministry of Finance, CBN and NIRSAL, to grant a total waiver on outstanding TCF loans owed by vulnerable households and micro-businesses.
For small and medium enterprises, the House recommended a restructuring framework involving extended moratoriums, reduced interest rates and longer repayment periods to safeguard jobs.
It also directed the joint committees on Banking Regulations, Finance and Poverty Alleviation to work with the relevant agencies to ensure “transparent, equitable and efficient” implementation of the waiver and restructuring measures.