Several customers of NIRSAL Microfinance Bank have raised concerns over repeated unexplained deduction of lump sums of money from their accounts by the bank without prior notice, claiming the withdrawals were repayments linked to the government-backed COVID-19 loan scheme.

The so-called COVID-19 loan scheme was a stimulus programme established by the Central Bank of Nigeria in 2020 and disbursed through NIRSAL, which allowed small business owners to borrow money to cushion the effects of the coronavirus pandemic on the economy.

However, five years on, many beneficiaries of the scheme are complaining about the method employed by the bank to retrieve the borrowed funds. Most of them complained about the bank’s decision to drain the debts from their accounts at once as opposed to previous belief that the deduction would be gradually drawn down like any other loans.

Since the beginning of this year, some of those affected by this action have trooped to social media to protest the unilateral deductions, especially under multiple posts on NIRSAL’s social media pages, while demanding answers from the bank.

Some also complained about the bank overbilling more than the amounts they owe from their accounts.

One of the victims, Inyali Peter, said on X last month that since 2024, NIRSAL has deducted at least N874,000 from his bank accounts despite only borrowing N370,000 from the stimulus scheme.

“I think there’s a mistake or something is wrong with @NirsalMFB platform for the recovery of the Covid-19 loan. I was given 370k (400k category) and since the moratorium expired, NIRSAL has been deducting money from my account,” Mr Peter said.

He added, “The bank stopped last year but resumed on Sunday with a deduction of 338k. Then yesterday, they deducted another 336k. Before this time, they’ve deducted nearly 200k from my account. I’ve done everything possible to check the repayment schedule online as they claimed or install their app, but none has worked. How can nearly N1m be deducted for a loan of 400k with a single digit interest rate? How can the bank be so insensitive to take 674k from my account in just five days? Is the repayment not supposed to be monthly?”

In another complaint addressed to NIRSAL, another X user, Michael Uche, accused the bank of refusing to update its credit records on their website despite clearing his debt. This reportedly led to continuous money deductions from his account to offset the loan. settlement.

“@NirsalMFB You have been deducting money from my bank accounts for the repayment of COVID-19 loan with reckless abandon without updating my statement of account on your site. Despite calls and emails no response from you. @cenbank @icpcnigeria,” Mr Uche posted.

The complaints were also evident under the bank’s post on Facebook, with one user, Ajiri Atonuje, questioning the reason for the deduction of over N600,000 from his account at once, adding that he was led to believe that the money was a grant.

“I want to know why NIRSAL is making illegal withdrawals from my account. I did not take out a loan,” Mr Atonuje said. “What was given was a household grant during the COVID, so they said. Why withdraw a huge sum of N660,000 naira from my account. This is illegal.”

Peoples Gazette contacted NIRSAL through their email and left a message on X, but there was no response as of the time this report was filed. Also, the bank’s mobile was unreachable when the Gazette made calls to it.

These unchecked deductions from loan recipients’ accounts by NIRSAL have raised concerns among Nigerians, especially with the NELFUND loan scheme for students by the Bola Tinubu administration, prompting Nigerians to warn the beneficiaries that they might face a similar problem.