NIRSAL MFB Clarifies COVID-19 Loan Was Not a Grant, Says Beneficiaries Must Repay

NIRSAL Microfinance Bank (NMFB) has clarified that the COVID-19 Targeted Credit Facility (TCF) was issued as a loan and not a grant, insisting that beneficiaries are required to repay the funds they received under the intervention.

The bank said deductions from the accounts of beneficiaries who accessed the facility would continue until their outstanding loan balances were fully repaid, in accordance with the Global Standing Instruction (GSI) mechanism.

In a statement issued in Abuja at the weekend, NMFB explained that the GSI framework allows financial institutions to recover outstanding loan obligations from eligible accounts linked to borrowers’ Bank Verification Numbers (BVNs), subject to applicable regulatory guidelines.

The bank said the clarification became necessary following concerns raised over its loan recovery activities, adding that it remained committed to transparency, accountability and responsible banking practices.

The COVID-19 Targeted Credit Facility was introduced by the Central Bank of Nigeria (CBN) to provide financial support to households and businesses affected by the economic impact of the COVID-19 pandemic.

According to NMFB, beneficiaries were required to accept electronic offer letters before receiving the funds. The documents, it said, clearly stated the terms and conditions of the facility, including repayment obligations and the recovery measures applicable in cases of default.

“Regarding the recovery process, the Bank operates within the applicable regulatory framework, including the Global Standing Instruction (GSI) mechanism approved by the Central Bank of Nigeria,” the statement said.

However, the bank acknowledged concerns from some beneficiaries over the timing and amounts deducted from their accounts, outstanding loan balances and access to repayment information.

It said the complaints were being taken seriously, stressing that customers were entitled to accurate information about their loan accounts and repayment records.

NMFB maintained that the deductions were intended to settle outstanding contractual obligations but urged beneficiaries who disputed the transactions or noticed discrepancies in their repayment records to contact the bank for individual account reconciliation.

“Where any beneficiary has concerns about deductions made, discrepancies in repayment records or the status of an outstanding balance, such cases should be brought to the bank’s attention for individual account reconciliation and appropriate resolution,” it added.

The bank assured beneficiaries that legitimate complaints would be investigated and that any discrepancies identified during the reconciliation process would receive the necessary attention.

It also urged customers seeking clarification about their loan status, repayment history or outstanding balances to reach out through its officially designated customer service channels.