The House of Representatives has asked the Federal Government to approve a full waiver on all outstanding COVID-19 survival loans owed by vulnerable households and micro-businesses across the country. The lawmakers also urged the Federal Government, through the Central Bank of Nigeria, NIRSAL Microfinance Bank, and the Federal Ministry of Finance, to suspend all ongoing deductions tied to the COVID-19 intervention loans.
The resolutions followed a motion of urgent public importance moved by Saidu Abdullahi, who represents Bida/Gbako/Katcha Federal Constituency of Niger State. He explained that during the COVID-19 pandemic, the Federal Government introduced the Targeted Credit Facility through the CBN and NIRSAL Microfinance Bank.
Under this programme, ₦419.42bn was disbursed to households, micro, small, and medium enterprises to reduce the economic pressure caused by the global lockdown. A total of 792,936 beneficiaries were reached, including 674,972 households and 117,964 small businesses, while women accounted for 45 percent of the beneficiaries, with about 330,128 women receiving ₦159.21bn.
Abdullahi stated, “The TCF was credited with creating or sustaining about 1,585,872 jobs, underscoring its significant impact on livelihoods and enterprise stability during and after the pandemic.” However, he expressed concern that as of September 2023, “₦261.07bn (about 62%) of the loans remained unpaid, while ₦378.03bn was classified as outstanding, reflecting widespread inability to repay among vulnerable households and micro-enterprises.”
He noted that recent CBN surveys showed rising loan defaults in Q4 2024 and Q2 2025 due to inflation above 24 percent, food insecurity, loss of purchasing power, business closures, and shrinking household incomes. Abdullahi added, “We believe that despite the high default figures reported in 2023, substantial recoveries have been made through the unplanned automatic deductions from beneficiaries’ bank accounts between late 2023 and December 2025. This suggests that the current outstanding exposure may be significantly lower and therefore fiscally manageable for a structured waiver.”
He reminded lawmakers that the COVID-19 TCF was intended as a survival loan, saying many households used the funds for food, shelter, healthcare, and school fees, which made repayment difficult for those still struggling.
He also referenced previous leniency in the Anchor Borrowers Programme, noting that despite its commercial nature and a default rate above 50 percent, the government had offered restructuring and partial waivers.
Abdullahi said international examples supported waivers, mentioning the United States, Canada, Germany, South Africa, and India. He warned that continuing automatic deductions and aggressive recoveries would deepen hardship, threaten small businesses, worsen unemployment, and increase social instability.
