CBN N50 billion COVID-19 loan: Nigerians kick as NIRSAL calls for repayment

The management of NIRSAL Microfinance Bank has requested for the payback of COVID-19 loans secured by many entrepreneurs across Nigeria through the Central Bank of Nigeria’s (CBN) Targeted Credit Facility (TCF).

 

 

This call was made by the financial institution on Monday via its Twitter handle.

 

Nigerians on Twitter have been having a complex discussion about the repayment of NIRSAL loans with some admitting that they do not have the means to pay back the loans.

 

What they are saying about NIRSAL’s request for loan repayment

Following NIRSAL’s tweet request for the repayment of the loans, Twitter users have expressed mixed feelings, an indication that the financial institution may have a problem getting back most of the loans.

A Twitter user, Abdulrasheed Ibrahim with the handle, @Abdulra19898072 made some claims that are hard to verify but his comment had the most interactions. He said, “@cenbank  I don’t think many people have the means of paying, coz those that want to do business were not the ones given the loan, rather, some of your staff collected % from individual and randomly disbursing to those that will buy iPhones.”

 

Ibrahim’s comment was, however, countered by one Omowole Tope who claims he got his loan and didn’t have to give any percentage to NIRSAL official.

 

 

 

Daniel Duke with handle @DanielDuke TOT took a more economical view of the situation saying, “Don’t worry, they are expecting repayments from the Grants that would be disbursed shortly. It’s a way to mop up excess cash that will be pumped into circulation through the  Grant payments. CBN’s plan to reduce inflation.”

Some lamented that they have not fully recovered from the pandemic. Stanleyoke with handle @OkerekeStanley3 “Covid-19 variance is still here with Us, the Economy is worst every day. There is no improvement and you are here talking about repayment. Can you please go to the market and check the prices of Food?”

Some Twitter users however took hilarious positions as regards the repayment of the loans. A user with the handle, @alkanetonline said, “I need another loan to repay the previous loan.” Another user joined him in lamenting that she has no idea where she’s going to get the money to pay back the loan.

 

There were also genuine concerns about the process of repayment of the loans. Some beneficiaries lamented how they are unsure of how to make the repayment of the loans. One user disclosed how he unsuccessfully tried several times to make transfer to the NIRSAL account he was given.

User @Donchyme accused NIRSAL of not responding to emails and phones since he has been trying hard to get the bank to educate him on a breakdown of the loan repayment.

 

Some conversations on Twitter have hinted at the possibility that the apex bank may employ GSI to recover loans. Twitter user @aismuhd said the only hope for a successful refund by customers would be to use the Global Standing Instruction (GSI).

He said, “I honestly think 90% of the monies disbursed so far; cannot be recovered except GSI will be invoked. Because most people that received the loan don’t have the means to pay back.”

Under the GSI, a bank client will no longer be able to accept a loan or credit from one bank and refuse to pay it back while maintaining many other bank accounts with sufficient credit balances to pay off the amount owed to the first bank.

What you should know about the loan

• The Central Bank of Nigeria (CBN) announced a N50 billion Targeted Credit Facility (TCF) in March 2020 as part of a stimulus package to help mitigate the impact of the coronavirus pandemic on the economy and businesses.
• The TCF was to support households and micro, small, and medium enterprises (MSMEs) that have been affected by the pandemic.