Banks Begin Mass Recovery of COVID-19 Relief Loans, Customers Alarmed by Unexpected Deductions

A widespread loan recovery effort has been initiated by commercial banks targeting the loans disbursed to individuals and Micro, Small, and Medium Enterprises (MSMEs) in response to the economic repercussions of the COVID-19 pandemic. Shocked beneficiaries have reported sizable deductions from their bank accounts without prior notification from the banks, leaving many baffled and financially strained.

The Central Bank of Nigeria had dispersed the loan through commercial banks in 2021, directed towards households and MSMEs adversely impacted by the pandemic. Managed by the NIRSAL Microfinance Bank, the fund featured a five percent interest rate with a moratorium that extended until February 28, 2021.

Expressing their dismay, beneficiaries have voiced their surprise at the unexpected deductions. One customer, identifying herself as Aunty Yinka, revealed that a commercial bank debited a total of N750,000 from both her and her son’s accounts, despite receiving only a N200,000 COVID-19 grant.

Narrating her ordeal, the distressed customer disclosed, “Last Friday around 4.48 pm, I checked my phone and saw a debit alert of N380,000. What was written was Global Standing Instruction.”

Suspecting fraud, she immediately took action, “Initially, I thought it was from fraudsters and had to freeze my account. When I complained to customer care, they asked me if I had taken a loan or given out my Bank Verification Number during COVID-19.”

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While Aunty Yinka clarified that she hadn’t taken a loan, she had shared her BVN and that of her son with acquaintances to obtain the N200,000 grant. However, to her astonishment, the bank deducted N380,000 from her account and N370,000 from her son’s, totaling a staggering N750,000.

Expressing her plight, she exclaimed, “I didn’t even spend the money I was debited, but I have reached out to those I gave my BVN during that time to know if they used my account to receive money.”

The puzzling deductions have sparked concern among others in her locality, suggesting a broader issue affecting multiple individuals who similarly availed themselves of the COVID-19 relief.

The situation has prompted dismay and confusion among beneficiaries who now find themselves grappling with unexpected and substantial account deductions.