From ₦200,000 to over ₦1 million, Nigerians have reported sudden debits from their bank accounts tied to NIRSAL Microfinance Bank. The deductions, marked as GSIRecovery, have reignited debate over COVID-19 loan repayments and consumer rights.
Across Facebook and other social media platforms, affected customers have shared screenshots of transaction alerts showing large withdrawals described as “GSIRecovery… by NIRSAL MICROFINANCE BANK.” Some claim the deductions happened without prior notice, while others say the amounts removed were higher than they expected.
The debits are linked to loans disbursed during the COVID-19 intervention programme introduced by the Central Bank of Nigeria through NIRSAL Microfinance Bank. At the time, thousands of individuals and small business owners received financial support to cushion the economic impact of the pandemic. However, years later, many beneficiaries are now discovering that the funds were structured as loans, not grants.
Under the Global Standing Instruction framework introduced by the Central Bank of Nigeria, banks are permitted to recover overdue loans directly from any bank account linked to a borrower’s BVN. This means that if a customer defaults on a loan, the creditor bank can trigger an automated deduction from other accounts held by the same individual across different banks.
NIRSAL Microfinance Bank has publicly explained that GSI is a regulatory-backed recovery mechanism used for unpaid loans. On its official platforms, the bank has advised customers who notice such debits to contact its customer care channels for clarification.
Despite this explanation, complaints continue to grow online. Some customers insist they were unaware that repayment was still outstanding. Others argue they did not receive sufficient reminders before the deductions were triggered. There are also claims from individuals who say they believed the COVID-19 funds were government grants rather than repayable loans.
News reports have highlighted the scale of the backlash, noting that multiple beneficiaries have accused the bank of carrying out “unexplained withdrawals.” In some cases, affected individuals have called for regulatory intervention, while others are exploring legal action.
Financial analysts note that the controversy reflects a wider issue of loan awareness and financial literacy. During the pandemic, many applicants rushed to access emergency funding. Years later, repayment enforcement has exposed misunderstandings about the loan terms, interest rates, and consequences of default.
Consumer protection advocates say that while GSI is legally recognised, banks must still follow due process. Borrowers have the right to request loan documentation, repayment history, and a clear breakdown of any deducted amount. If there is a dispute, customers can escalate complaints through their bank and, if unresolved, report the matter to the Central Bank of Nigeria’s Consumer Protection Department.
For affected individuals, the first step is to verify whether they indeed received a COVID-19 loan from NIRSAL Microfinance Bank. Checking old emails, loan agreements, and bank records can help confirm the original terms. Customers should also formally request a detailed account statement showing the outstanding balance and how the recovered amount was calculated.
The renewed attention around GSIRecovery deductions has sparked broader conversations about transparency in digital lending and automated debt recovery systems in Nigeria’s banking sector. While banks rely on regulatory tools to manage credit risk, customers are increasingly demanding clearer communication and better dispute resolution processes.
As online complaints continue to surface, the issue highlights the delicate balance between enforcing loan repayment and maintaining public trust in financial institutions. For many Nigerians, the sudden appearance of a GSIRecovery debit has become more than just a bank transaction alert — it has reopened unresolved questions about pandemic-era financial support and the long-term consequences attached to it.
