Covid-19 loans: why there has been sudden decline in the rate of the loan disbursement

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Millions of applicants of the COVID-19 Targeted Credit Facility Loan, AGSMEIS Loan, Non-Interest Loan for COVID-19 and others have wondered why there has been a sudden decline in the rate of the loan disbursement, especially since the last quarter of 2021.


While many attributed it to termination of the loan programmes by the Federal Government, others asserted it could be that the fund budgeted for the loan programmes have been diverted by those in authority.

This has resulted in the applicants/non-beneficiaries of the Loan Programmes taunting the Nirsal Microfinance Bank Authorities to the extent that the Christmas wishes by the bank was abhorred by the disgruntled applicants/non-beneficiaries.

SEE ALSO: How to Check Your COVID-19 TCF Loan Approval Status


In the heat of speculation and anticipation, we wish to state that the above assertions are not true. The Federal Government has not terminated the Loan Programmes and it is a baseless allegation to state that the funds meant for the loan programme have been diverted by those in authority.

The Managing Director of Nirsal Microfinance Bank, Abubakar Abdulahi Kure, in a recent report, while responding to an interview with Abdulwahab Isa, noted that the Loan Programmes are still ongoing.

Kure stated that the major factor which has affected the rate of the loan disbursement to the eligible Applicants is the fact that the demand for the loan by Nigerians has exceeded the available funds allocated for the programme.

The NMFB Director disclosed that about 7 Million Nigerians are currently waiting for the Loan offers in their database. According to Kure, “Covid-19 loan is still ongoing. The demand is just greater than the supply. As I speak with you, almost seven million Nigerians are asking for Covid loans.

SEE ALSO: CBN to Begin Second Batch Disbursement | What to Know


The Monetary Policy Committee (MPC) had in a recent meeting urged the Central Bank of Nigeria to continue with the COVID-19 Intervention Loan Programmes, owing to the enormous impacts of the programmes on Households and Micro, Small and Medium Enterprise (MSMEs) in Nigeria.

Kure however disclosed that the Central Bank of Nigeria has insisted that instead of adding more funds into the loan programmes, the focus should be on recovering the loans that have been offered to existing beneficiaries.

It was clearly stated that the Loans are not free money and must be repaid. Hence, the Federal Government is bent on recovering the existing Loan through the repayment plans and using it to fund subsequent disbursement to the numerous applicants.

According to the NMFB Boss, the NIRSAL Micro Finance Bank has disbursed loans worth over N503 billion to over 881 thousand Nigerians and businesses.

SEE ALSO: More Nigerians To Benefit From CBN COVID-19 Loan, Set to Reopen Portal – FG


A breakdown of the beneficiaries showed that 612,321 households received N240. 083 billion in loans ranging from N250,000 to N1 million.

Similarly, between 2020 and December 2021, 103,185 Small and Medium Enterprises (SMEs) received loans valued at N104. 023 billion also under the COVID19 TCF.

Also, 21,027 Households that are Non-Interest Beneficiaries (NIB) of the NIRSAL MFB loans have so far secured facilities amounting to N9.091 billion.

Small and Medium Enterprises (SMEs) under the Non-Interest scheme (NIB SME) numbering 2,710 have accessed N1.057 billion loan while 31,067 Agric Small Medium Enterprises Scheme (AGSMEIS) beneficiaries have accessed N116. 001 billion loans from NIRSAL MFB in one year.

Also, 105,244 Anchor Borrowers’ Programme (ABP) successful applicants have equally received loans amounting to N31.001 Billion while 5,527 Nigeria Youth Investment Fund (NYIF) have also drawn down N1.009 billion loans.

Expectedly and as at now theoretically, the loan amounts recovered through the repayments made by over 800 Thousand existing Beneficiaries, would be used to fund further disbursement to other applicants of the Loan Programmes.

A little discrepancy however exists in the Nigeria Youth Investment Fund. While other Loan Programmes exhausted their allotted funds, the Nigeria Youth Investment Fund has taken less than one-fourth of its overall budget. This means that Loan disbursement under the Nigeria Youth Investment Fund will continue.

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About the Author: Sam Oluwarantimi

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