The Cross River State Government has ordered an immediate suspension of all payments linked to the ₦5 million Youth Empowerment Loan Scheme, including the ₦13,000 registration fee, following complaints of extortion and alleged illegal charges raised by members of the public.
The directive was contained in an official memo dated January 8, 2026, issued by the People First Complaints and Solutions Desk Office in the Governor’s Office, Calabar. The memo said the office had received multiple complaints concerning the collection of money from applicants under the youth empowerment programme.
According to the memo, the State Coordinator of the complaints desk stated that the Executive Governor “condemns any form of exploitation of citizens under whatever guise” and has directed that all payments connected to the scheme be stopped with immediate effect.
The memo instructed the Chairman of the Cross River State Youth Empowerment Scheme to suspend the collection of any fees, levies or charges from applicants, pending further engagement with the complaints office to clarify the issues raised by members of the public.
It warned that failure to comply with the directive would attract “serious consequences,” stressing that the government would not tolerate actions capable of undermining public confidence in programmes funded with state resources. The directive was also copied to the Executive Governor for information and necessary action.
The suspension follows public criticism over the ₦13,000 registration fee introduced as part of the application process for youths seeking loans of up to ₦5 million to scale their businesses. The fee was described as payment for “search and customized ATM,” a requirement that sparked widespread concern.
A citizen, Agba Jalingo, had earlier faulted the fee in a Facebook post, warning that charging applicants under a government-funded empowerment scheme could amount to exploiting desperate young people seeking financial support.
He questioned the justification for the charge, asking whether applicants who fail to secure the loan would be refunded, and warned that the fee could generate huge sums of money without guarantees for beneficiaries.
Jalingo noted that if only 20,000 youths paid ₦13,000 each, about ₦260 million would be realised, raising concerns about transparency and accountability in the handling of the scheme.
He also argued that commercial banks do not usually collect loan processing fees upfront and that ATM cards typically cost far less than the amount being demanded, describing the requirement as a red flag.
The government’s latest action is expected to halt further collections while authorities review the complaints and determine appropriate steps to address the concerns raised by the public.
