CBN, NMfB Embark on Massive Loan Recovery, Combs Debtors’ Accounts
- The Central Bank of Nigeria (CBN) and NIRSAL Microfinance Bank have started debiting recipients of the COVID-19 palliative
- The banks began debiting defaulters' accounts on Friday, October 28, 2022, at about noon
- Defaulters under the Anchor Borrowers Programme have also been targeted, including SMEs under the Targeted Credit Facility scheme
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
Nigeria's apex bank, the Central Bank of Nigeria (CBN), in partnership with NIRSAL Microfinance (NMfB), has begun recovering their loans from defaulting Nigerians.
The Nation reported that on Friday, October 28, 2022, many Nigerians noticed debit alerts from their banks, including their dependents whose Bank Verification Numbers (BVN) are linked to their accounts.
Source: Getty Images
Recipients of COVID-19 and other loans targeted
NMfB began the recovery of loan facilities granted to Nigerians under the Targeted Credit Facility (TCF) and the Agric, Small Medium Enterprises Scheme (AGSMEIS).
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
The CBN had threatened beneficiaries of the loans that it would begin the recovery process soon.
Those who benefitted from the COVID-19 TCF and AGSMEIS loans had their accounts placed on Global Standing Instruction (GSI).
The GSI is a mandate authorising the recovery of a due loan obligation from any defaulters with banks other than the creditor bank.
Among those targeted are defaulters of the Anchor Borrowers Programme (ABP), whose accounts have already been debited.
The ABP is designed to link anchor firms involved in the processing and smallholder farmers' needed key agricultural commodities.
Households who got palliatives also targeted
Under the TCF Household programme, 639,197 persons got credit facilities estimated at N258.1 billion, while the SME facility saw about 112,291 Small and Medium Enterprises getting loans at N112.2 billion.
The Households received as little as N250,000 at the peak of the COVID-19 pandemic to buy food and sustain themselves. Many of the beneficiaries are those who lost their jobs and means of livelihood. Some have remained unemployed.
TCF Household beneficiaries received as little as N250,000 at the height of the COVID-19 pandemic to buy food and sustain themselves. Many beneficiaries lost their jobs, and many more are still unemployed.
However, NMfB stated that defaulters could walk into the bank's offices and restructure their loans.
Central Bank of Nigeria begins debiting loan defaulters' accounts
Recall that Legit.ng has reported that the Central Bank of Nigeria has made good on its promise and has begun debiting accounts of defaulters under its development finance intervention programmes.
The director of development finance at the CBN, Yusuf Yila stated this on Wednesday, September 28 after the Monetary Policy Committee (MPC) meeting in Abuja.
Yila said the apex bank has begun debiting its defaulters' accounts, specifically states and farmers who benefitted from its interventions.
Source: Legit.ng
