According to reports, some Nigerians who benefited from the Central Bank of Nigeria (CBN) and NIRSAL Microfinance Bank’s targeted credit facility (TCF) have defaulted on repayment, leaving an outstanding debt of N261.07 billion out of the N419.42 billion disbursed.
The targeted credit facility, initiated in April 2020, aimed to mitigate the impact of the COVID-19 pandemic on households and small and medium-sized enterprises (SMEs).
A document released by the CBN revealed that the facility facilitated the creation of 1,585,872 direct and indirect jobs, contributing to employment in Nigeria.
Out of the total disbursed amount, approximately N41.39 billion has been repaid in principal, with N174.60 million in interest repayments. However, a significant outstanding balance of about N378.03 billion remains, with N261.07 billion overdue, indicating many recipients who have not met their repayment obligations.
The document highlighted that most of the top beneficiaries received N2.5 million for SME finance but have been classified as ‘non-performing’, suggesting challenges or failures in repayment. Only one beneficiary, Centriculture Limited, has been noted as ‘performing’, with a repayment of N1 million.
Recommendations outlined in the document include integrating the intervention into the Agri-Business/Small and Medium Enterprise Investment Scheme (AgSMEIS) for improved management and outcomes. Another recommendation is to develop a clear exit strategy aligned with the outstanding balance to facilitate the smooth closure of the scheme.
