The Office of the Chairman of the Cross River State Youth Empowerment Scheme has denied allegations of extortion and diversion of funds linked to the ₦5 million Youth Empowerment Loan Scheme, following an earlier directive by the state government ordering a suspension of all related payments.
In a public notice on Thursday, the office said misleading information was circulating about the scheme and sought to clarify the process surrounding the controversial ₦13,000 fee that sparked public criticism.
The statement said a member of the Chairman’s team was physically present at designated venues during the exercise and monitored the entire process, stressing that at no time was money collected by the scheme, the Chairman, or any government official.
According to the notice, the ₦13,000 referenced is paid into each applicant’s personal account with Zenith Bank Plc and is debited by the bank solely for CAC search, documentation, and customized ATM processing connected to loan administration. It added that the funds do not pass through the scheme or any government office and can be verified through bank records.
The Chairman’s office also disclosed that Governor Bassey Edet Otu has approved the reimbursement of the ₦13,000 to all verified and successful beneficiaries who submit complete and genuine documentation, describing allegations of personal enrichment as false and misleading.
The denial follows an earlier memo from the Governor’s Office, issued through the People First Complaints and Solutions Desk Office, which ordered an immediate halt to all payments under the loan scheme, including the ₦13,000, after complaints of extortion, illegal taxation, and fraudulent activities were received.
That memo stated that the Executive Governor condemns any form of exploitation of citizens and warned that non compliance with the suspension directive would attract serious consequences.
The Office of the Chairman said the Youth Empowerment Scheme remains committed to transparency, accountability, and genuine youth empowerment, while advising members of the public to rely only on information from official and verifiable sources as clarification efforts continue.
Applicants and stakeholders have been urged to await further communication from authorities.
