CBN support, loans not grants – NMFB

NIRSAL Microfinance Bank (NMFB) has clarified that the Central Bank of Nigeria’s (CBN) intervention facilities are not grants, contrary to circulating rumors among beneficiaries. In a statement issued in Abuja on Thursday, January 4, the bank addressed speculations and reminded borrowers of their repayment obligations.

NMFB highlighted that, despite extending the initial one-year moratorium by an additional year, several borrowers have defaulted on their repayment schedules, including the 36-month moratorium for the Targeted Credit Facility (TCF) and the 60-month moratorium for the Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS).

Consequently, NMFB has initiated a proactive Recovery Campaign through its social media platforms to remind and educate beneficiaries about the repercussions of defaulting on their loans. The bank also clarified that it has been directly communicating with beneficiaries to dispel rumors of intermediaries or agents representing the bank.

Emphasizing the significance of the Global Standing Instruction (GSI), authorized by the CBN, NMFB highlighted that this policy allows the bank to debit accounts in other banks to settle defaults, serving as a legal recourse for loan recovery.

NMFB encourages beneficiaries with genuine concerns about repayment to approach the bank for evaluation and further discussion about their loan status, noting that the bank’s website contains valuable information to facilitate smooth repayment of the loans.

The bank urges beneficiaries to report individuals claiming to be agents of the bank to the appropriate authorities, and a whistleblower portal has been established for this purpose. NMFB underscores that honoring repayment commitments is the most prudent action for beneficiaries, as evasion is not a viable option. The intervention loans provided by the CBN were specifically designed to mitigate the impact of the COVID-19 pandemic, sustain businesses, and strengthen the economy.