The decision followed a motion of urgent public importance moved by Saidu Musa Abdullahi, Deputy Chairman of the House Committee on Finance, who warned that worsening economic conditions have left many Nigerians unable to repay the pandemic-era credit facilities.
In addition to the suspension, the House directed the CBN, NIRSAL, and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to restructure repayment terms for small businesses. Recommended adjustments include extended moratoriums, reduced interest rates, and longer repayment periods to help protect jobs and prevent business shutdowns.
Abdullahi noted that the COVID-19 Targeted Credit Facility (TCF), launched at the height of the pandemic, disbursed ₦419.42 billion to 792,936 beneficiaries across the country — comprising 674,972 households and 117,964 small businesses. Women received 45 percent of the total support, with the scheme credited for creating or sustaining over 1.5 million jobs.
However, repayment has remained a major challenge. As of September 2023, ₦261.07 billion — representing 62 percent of the loans — had not been repaid, while ₦378.03 billion remained outstanding. Although recent automatic deductions recovered some funds, Abdullahi said many beneficiaries are still facing serious financial strain.
He emphasized that the TCF was designed as a survival support mechanism rather than a conventional business loan, with many recipients spending the funds on essential needs such as food, medication, shelter, and school fees. This, he argued, makes full repayment difficult in the face of prolonged economic hardship.
Abdullahi also referenced both local and global precedents for loan leniency. He cited Nigeria’s Anchor Borrowers Programme, which has repeatedly offered restructuring and partial waivers, as well as COVID-19 loan forgiveness measures implemented in the United States, Canada, Germany, South Africa, and India.
“The continued automatic debits and aggressive recoveries are causing severe hardship, threatening small businesses, worsening unemployment, and heightening social instability,” he warned, urging urgent intervention to support the most vulnerable citizens.
