Reps seek waiver of outstanding COVID-19 survival loans
The House of Representatives has called on the Federal Government to grant a total waiver on outstanding COVID-19 survival loans owed by vulnerable households and micro-businesses.
The resolution followed a motion sponsored by a Lawmaker, Hon. Saidu Musa Abdullahi, representing Bida/Gbako/Katcha Federal Constituency and debated at plenary on Wednesday
Abdullahi recalled that the COVID-19 Targeted Credit Facility (TCF) was introduced through the Central Bank of Nigeria (CBN) and NIRSAL Microfinance Bank to cushion the socioeconomic impact of the pandemic.
He said the scheme disbursed about ₦419.42 billion to 792,936 beneficiaries nationwide, including 674,972 households and 117,964 micro, small and medium enterprises.
According to him, women accounted for about 45 per cent of beneficiaries, while the intervention helped create or sustain over 1.5 million jobs.
The House expressed concern that as of September 2023, about ₦261.07 billion of the loans remained unpaid, with a large portion still classified as outstanding.
Lawmakers also noted that rising inflation, food insecurity, business closures and declining incomes have worsened repayment challenges for beneficiaries.
They stressed that the COVID-19 loans were survival interventions, as many beneficiaries spent the funds on food, healthcare, shelter and school fees during the lockdown.
The House warned that continued automatic deductions were causing severe hardship and threatening the survival of small businesses.
Consequently, lawmakers urged the Federal Government to suspend all deductions on the loans and grant a total waiver for vulnerable households and micro-businesses.
They also called on the CBN, NIRSAL and SMEDAN to restructure repayment terms for SMEs by extending moratoriums, reducing interest rates and spreading repayments over longer periods.
Relevant House committees were mandated to liaise with the concerned agencies to ensure transparent and effective implementation of the waiver and restructuring.
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