House of Representatives Orders CBN To Restructure Repayment Plans For COVID-19 Intervention Loans

The House of Representatives has directed the CBN and NIRSAL to stop forced debits and restructure COVID-19 loan terms to prevent small business collapse.

By: AXL Media

Published: Apr 7, 2026, 7:05 AM EDT

Source: Information for this report was sourced from Peoples Gazette

Legislative Intervention Amid Public Outcry

The lower chamber of the National Assembly has moved to shield small business owners and households from aggressive debt recovery tactics linked to the 2020 pandemic relief funds. In a recent session, the House of Representatives mandated the Central Bank of Nigeria, NIRSAL Microfinance Bank, and SMEDAN to immediately restructure the repayment frameworks for outstanding COVID-19 loans. This directive follows a surge in complaints from beneficiaries who reported that their savings were being depleted through automated recovery systems without prior notification or authorization.

Addressing the Economic Hardship of Beneficiaries

Representative Saidu Abdullahi, who initiated the motion, emphasized that the current economic climate has made it impossible for many genuine borrowers to meet their original obligations. The House has urged the Ministry of Finance to suspend all forced recovery actions and is specifically advocating for loan waivers for low-income earners. Lawmakers argued that without an extension of repayment periods and a significant reduction in interest rates, the very small businesses the loans were intended to save may now face total collapse under the weight of federal debt.

The Targeted Credit Facility and Recovery Statistics

Established in 2020 to mitigate the economic shock of the pandemic, the Targeted Credit Facility disbursed approximately 419.42 billion Naira to over 790,000 beneficiaries. While the program was a critical lifeline for households and small enterprises, stakeholders now claim that the transparency regarding total recoveries remains low. Independent analysts, including economist Bola Adeola, noted that while auto-debits have recently intensified, official statistics on successful repayments and default rates have not been fully disclosed to the public by the apex bank or its affiliates.