The House of Representatives has urged the Federal Government to grant a full waiver on outstanding COVID-19 survival loans owed by vulnerable households and micro-businesses nationwide.

The call also included a directive to the Central Bank of Nigeria (CBN), NIRSAL Microfinance Bank and the Federal Ministry of Finance to immediately suspend all ongoing deductions on COVID-19 intervention loans being recovered from beneficiaries.

The resolutions followed the adoption of a motion of urgent public importance moved on Wednesday by Rep. Saidu Abdullahi (APC-Niger), representing Bida/Gbako/Katcha Federal Constituency.

Abdullahi recalled that during the COVID-19 pandemic, the Federal Government, through the CBN and NIRSAL Microfinance Bank, introduced the Targeted Credit Facility (TCF) to cushion the economic impact of the lockdown on households and businesses. He said a total of ₦419.42 billion was disbursed to households, micro, small and medium enterprises nationwide.

He said the facility was accessed by 792,936 beneficiaries, consisting of 674,972 households and 117,964 small businesses. According to him, women accounted for 45 per cent of the beneficiaries, with 330,128 women receiving ₦159.21 billion.

Abdullahi said the TCF created or sustained about 1,585,872 jobs, underscoring its significant impact on livelihoods and enterprise stability during and after the pandemic.

He, however, expressed concern that as of September 2023, about ₦261.07 billion—representing 62 per cent of the loans—remained unpaid, while ₦378.03 billion was classified as outstanding, reflecting the widespread inability of vulnerable households and micro-enterprises to repay.

He added 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. He attributed the trend to inflation above 24 per cent, severe food insecurity, declining purchasing power, business closures and shrinking household incomes.

Abdullahi noted that despite the high default rates recorded in 2023, substantial recoveries had been made through automatic deductions from beneficiaries’ bank accounts between late 2023 and December 2025, indicating that the current outstanding exposure may be significantly lower and manageable for a structured waiver.

According to him, the TCF was primarily a survival support loan and not a conventional business facility, as many beneficiaries used the funds for essential needs such as food, shelter, healthcare and school fees during the lockdown. He said repayment remained unrealistic for many households that had not recovered economically.

He also cited the Federal Government’s leniency under the Anchor Borrowers Programme, where restructuring and partial waivers were granted despite a default rate above 50 per cent.

Abdullahi further stated that several countries, including the United States, Canada, Germany, South Africa and India, had similarly implemented waivers or extended repayment periods on COVID-19 relief loans.

He warned that continued automatic deductions and aggressive recoveries were inflicting severe hardship on vulnerable Nigerians, threatening the survival of small businesses, worsening unemployment and heightening the risk of social instability.