NIRSAL MfB defends COVID-19 loan recoveries, urges beneficiaries to report discrepancies
NIRSAL Microfinance Bank (NMFB) has defended its recovery of loans under the COVID-19 Targeted Credit Facility (TCF), saying the deductions are backed by the terms beneficiaries accepted and by Central Bank of Nigeria (CBN) rules.
The bank responded to media reports and public complaints about deductions from accounts linked to beneficiaries, as well as concerns over loan balances, repayment records and access to customer support.
The bank, in a statement Friday, said it considers it “important to provide clarification on the issues raised” and to reassure the public of its commitment to transparency and accountability.
NMFB stressed that the CBN introduced the facility as an intervention loan for households and businesses hit by the pandemic’s economic fallout. It “was not designed as a grant,” the statement said.
Beneficiaries were required to accept electronic offer letters before disbursement, setting out repayment obligations and the recovery mechanism in the event of default.
On recovery, the bank said it operates under the CBN-approved Global Standing Instruction (GSI) mechanism. The framework allows financial institutions to recover outstanding loans from eligible accounts linked to a borrower’s Bank Verification Number (BVN), subject to applicable guidelines.
The bank acknowledged complaints about the timing and amounts of deductions, outstanding balances and access to repayment information.
“We take these concerns seriously and recognise the importance of ensuring that every customer has access to accurate information about their loan accounts,” the statement said.
It maintained, however, that recoveries “are intended to settle outstanding contractual obligations.” Beneficiaries with concerns about deductions, discrepancies in repayment records or the status of a balance were asked to bring such cases to the bank for individual account reconciliation and resolution.
NMFB said it was committed to ensuring that legitimate complaints are investigated and that any discrepancies established through reconciliation “receive the necessary attention.”
The bank also urged beneficiaries to use its officially designated customer service channels for clarification on loan status, repayment history or outstanding obligations.
The Bank cautioned them against relying on unofficial intermediaries or individuals claiming to represent NMFB in relation to the intervention facility.
The bank reaffirmed its mandate of promoting financial inclusion and strengthening access to finance for micro, small and medium-sized enterprises (MSMEs).
It said it would continue to engage stakeholders and address customer concerns in a “transparent, professional and responsible manner.”
