N180bn loans disbursed via NIRSAL MFB may be forfeited by lender

Indications have emerged that borrowers of about N180 billion loans from NIRSAL Microfinance Bank (NMFB) during the coronavirus pandemic may never be requested to pay back.

Evidence of this emerged after Senate ad hoc committee investigating alleged uneven disbursement of loans, grants and interventions in the six geopolitical regions by NIRSAL Microfinance Bank urged the Central Bank of Nigeria (CBN) to writeoff the trapped loans granted Nigerians during the coronavirus pandemic.

Chairman of the committee, Senator Sani Musa, who stated this during a hearing on the matter, added that NISRAL gave out the money as a grant to Nigerians.

“I don’t see how you are going to collect over five hundred billion back from the criteria required for the acquisition of these loans. So, since recovering this money will be difficult for NISRAL because of the time it was disbursed, let us request that CBN gives them fresh funding so they can give it out to persons that can pay back.

“About N180 billion is out and has gone. After all, countries such as the U.S. gave their citizens free money over four times during the pandemic. So, for the bank to be able to meet its obligations, fresh funds should be released to them,” Musa was quoted in a statement issued by NIRSAL recently.

NIRSAL Microfinance Bank (NMFB) is a Nigerian financial institution licensed by the CBN to carry out specialised banking services.

NMFB was incorporated as a private limited liability company in 2019 and commenced operations following the grant of a National Microfinance Bank license by the Central Bank of Nigeria in the same year.

In addition to the inherent responsibilities of the national licence, NIRSAL Microfinance Bank is primarily an intervention bank, a viable channel for the on-lending of special funds from the Central Bank of Nigeria to qualified citizens of Nigeria.

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