The House of Representatives on Wednesday called for the immediate suspension of all deductions related to COVID-19 intervention loans issued to Nigerians during the pandemic. The lawmakers also urged the Federal Government to grant a full waiver for vulnerable households and micro-businesses that are still owing, saying many beneficiaries can no longer meet repayment obligations due to the worsening economic situation.
The resolution followed a motion of urgent public importance sponsored by the Deputy Chairman of the House Committee on Finance, Saidu Musa Abdullahi, who stressed that millions of Nigerians relied on the loans for survival during the lockdown period and are now unable to repay because of rising inflation, job losses, and the general increase in the cost of living.
During the height of the COVID-19 outbreak in 2020, the Federal Government, through the Central Bank of Nigeria (CBN), introduced several intervention programmes aimed at preventing economic collapse. These programmes included soft loans for households, farmers, micro-businesses, traders, and small and medium-scale enterprises (SMEs). The loans were issued mainly through NIRSAL Microfinance Bank, with long repayment plans and low interest rates.
Many Nigerian families used these funds to buy food, pay rent, keep small businesses running, and survive months of lockdowns. However, with inflation now among the highest in Africa, and with the cost of fuel, transport, food, and basic services rising sharply, lawmakers say the conditions have changed drastically since the time the loans were issued.
Presenting the motion, Hon. Abdullahi said it had become clear that many families and small businesses no longer have the financial strength to repay the loans. He noted that deductions have resumed aggressively in recent months, causing anxiety and hardship for many beneficiaries.
“The economic situation has worsened. Nigerians are struggling to feed, to pay school fees, to run their shops, and to keep their businesses alive. It is only fair that government considers the realities on the ground,” he told the House.
Lawmakers agreed that continuing to deduct money from citizens at a time of rising prices and declining income could push more people into poverty. They said the government must recognise that the loans were issued during an emergency and should not be treated in the same way as regular commercial loans.
Following deliberations, the House passed a resolution directing the CBN, the Federal Ministry of Finance, and NIRSAL Microfinance Bank to immediately suspend all ongoing deductions from COVID-19 loan beneficiaries.
They also urged the government to adopt a compassionate approach by granting a total waiver for vulnerable households and micro-enterprises — especially those that used the loans for basic survival rather than business expansion.
Lawmakers described the full waiver as a necessary step to prevent further suffering, especially as the removal of fuel subsidy, currency devaluation, and rising inflation have pushed many households to the edge.
The House also raised concerns about the survival of SMEs, which make up more than 80 percent of Nigeria’s businesses and employ millions of people. Many small businesses continue to struggle due to high operating costs, unstable electricity supply, increased transportation expenses, and difficulty accessing foreign exchange.
To prevent closures and job losses, the lawmakers directed the CBN, SMEDAN (Small and Medium Enterprises Development Agency of Nigeria), and NIRSAL to restructure repayment terms for SMEs that are willing to pay but are facing genuine hardship. The restructuring should include:
Longer repayment periods
Reduced interest rates
Extended moratoriums (delayed repayment start dates)
Flexible repayment schedules
According to the House, this approach would allow small businesses to recover and remain productive, rather than collapsing due to pressure from loan servicing.
Nigeria is currently facing one of its toughest economic periods in decades. Inflation is above 30 percent, food prices continue to rise rapidly, and many families say their income no longer meets basic needs. Public transport, electricity tariffs, school fees, and rent have all increased drastically since 2023.
The removal of fuel subsidy and the floating of the naira — policies introduced by President Bola Tinubu’s administration — were designed to stabilise the economy in the long term. However, in the short term, they have created widespread financial strain, prompting calls for targeted relief for vulnerable citizens.
Lawmakers said it would be unfair to continue demanding repayment from citizens who took the loans under entirely different conditions and now face economic realities beyond their control.
With the resolution passed, the House expects the CBN, the Ministry of Finance, NIRSAL Microfinance Bank, and SMEDAN to implement the suspension of deductions without delay. The agencies have also been asked to brief the House on the number of affected beneficiaries, the total outstanding loan amounts, and updated repayment plans for SMEs.
Many lawmakers stressed the importance of transparency in the handling of the intervention loans, saying Nigerians must be fully informed about government policies that affect their finances.
