A considerable number of Nigerians have struggled to repay loans issued under the Central Bank of Nigeria (CBN) and NIRSAL Microfinance Bank’s targeted credit facility (TCF).
This facility, launched in April 2020 to cushion the effects of the COVID-19 pandemic on households and SMEs, has seen over 62% remain unpaid, with N261.07 billion in defaults out of N419.42 billion disbursed as of September 30, 2024.
Of the N419.42 billion disbursed, principal repayments amount to about N41.39 billion, with interest repayments standing at approximately N174.60 million.
However, there is a significant outstanding amount of roughly N378.03 billion, with an overdue amount of N261.07 billion, indicating that a large number of recipients have not kept up with their repayment schedules.
In a document containing details of the loan and seen by Nairametrics, the facility led to the creation of 1,585,872 direct and indirect jobs, contributing to Nigeria’s employment landscape.
It also boosted domestic household consumption by supporting 792,936 beneficiaries across the country. This group comprised 117,964 small businesses and 674,972 households.
Top Defaulters
Each of the top beneficiaries of the loan get N2.5 million for the purpose of SME finance. However, most of these beneficiaries have been categorieed as ‘non-performing’, indicating challenges or failures in repayment.