The House of Representatives has called on the Federal Government to grant a total waiver on 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 immediately suspend all deductions on COVID-19 intervention loans currently being recovered from beneficiaries.
The resolutions followed the adoption of a motion of urgent public importance moved on Wednesday by Saidu Abdullahi, who represents the Bida/Gbako/Katcha Federal Constituency of Niger State.
Abdullahi recalled that during the COVID-19 pandemic, the Federal Government, through the CBN and NIRSAL Microfinance Bank, introduced the Targeted Credit Facility to cushion the economic impact of the lockdown on households and businesses. He said the intervention disbursed ₦419.42bn to households, micro, small and medium enterprises nationwide.
According to him, a total of 792,936 beneficiaries accessed the facility, comprising 674,972 households and 117,964 small businesses. He added that women accounted for 45 per cent of beneficiaries, with about 330,128 women receiving ₦159.21bn.
“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,” Abdullahi said.
However, he expressed concern that as of September 2023, about ₦261.07bn, representing 62 per cent of the loans, remained unpaid, while ₦378.03bn was classified as outstanding, reflecting the widespread inability of vulnerable households and micro-enterprises to repay.
He further noted that recent CBN surveys indicated rising default rates across household and enterprise lending in the fourth quarter of 2024 and the second quarter of 2025. According to him, the situation was driven by inflation above 24 per cent, severe food insecurity, declining purchasing power, business closures and shrinking household incomes.
Abdullahi added that despite the high default figures reported in 2023, substantial recoveries had been made through automatic deductions from beneficiaries’ bank accounts between late 2023 and December 2025, suggesting that the current outstanding exposure may be significantly lower and fiscally manageable for a structured waiver.
“The House recognises that the COVID-19 TCF was fundamentally a survival support loan, not a conventional business facility,” he said, explaining that many beneficiaries used the funds for essential needs such as food, shelter, healthcare and school fees during the lockdown, making repayment unrealistic for those who have not recovered economically.
He also pointed to previous government leniency, citing the Anchor Borrowers Programme, where restructuring and partial waivers were granted despite a default rate exceeding 50 per cent.
Abdullahi noted that similar waivers and moratoriums had been implemented internationally, with countries such as the United States, Canada, Germany, South Africa and India forgiving portions of COVID-19 relief loans or extending repayment periods.
He warned that continued automatic debits and aggressive recoveries were inflicting severe hardship on vulnerable Nigerians, threatening the survival of small businesses, worsening unemployment and increasing the risk of social instability.
