My candid advice is to ask NMFB for your loan records, get both banks to explain the deductions, and request a repayment arrangement you can afford if the debt is confirmed. Do not assume the deductions are correct, but do not ignore the repayment notices either. I’m sorry this is weighing on you, eRead more
My candid advice is to ask NMFB for your loan records, get both banks to explain the deductions, and request a repayment arrangement you can afford if the debt is confirmed. Do not assume the deductions are correct, but do not ignore the repayment notices either.
I’m sorry this is weighing on you, especially when the money being deducted is what you need for daily living. Being told you owe money you thought was assistance can be very upsetting. Let us separate what you were told from what the records actually show.
The COVID-19 Targeted Credit Facility administered through NIRSAL Microfinance Bank, NMFB, was a loan programme, not a grant. However, your application and payment records must confirm whether that was the programme you received money under.
A grant is money you generally do not repay, provided you meet its conditions. A loan is money you must repay according to the agreement.
Imagine Mama Ngozi receives money to rebuild her tomato business. Someone helping her apply says, “It is government assistance.” But the offer she accepts says “loan” and includes repayment terms. The word “assistance” does not turn that loan into a gift. At the same time, if someone misled her or accepted terms without her permission, that deserves investigation.
Receiving money alone does not establish that every amount now being demanded or deducted is correct.
About the deductions from two banks: there is a mechanism called the Global Standing Instruction, or GSI. Under the applicable rules and an authorised mandate, it can allow recovery of overdue loans from eligible accounts linked to a borrower’s BVN, including accounts at other banks.
That could explain what you are seeing. It does not automatically mean someone is personally watching your accounts. But your banks must confirm the actual basis of these particular deductions. Your BVN alone is not blanket permission for anyone to take money.
Here is what I suggest you do.
1. Write to NMFB through contact details you independently confirm on its official website or at a branch.
Ask for your application, offer letter, evidence of your acceptance, repayment schedule, any GSI mandate, and a full loan statement. The statement should show the amount paid to you, interest and charges, every repayment or recovery, and the balance remaining.
You can write:
“I understood this payment to be a grant. I am now receiving repayment demands and deductions from my accounts. Please provide the documents establishing the loan and recovery authority, together with a full breakdown of the outstanding balance.”
2. Submit a written complaint to each bank making deductions.
Download your statements and identify the dates and amounts. Ask each bank to confirm who initiated the debits, whether they were GSI recoveries, the authority relied upon, and why you received no alerts. Keep complaint reference numbers and copies of every response.
Ask NMFB to match all deductions against your loan account so money already recovered is not demanded again.
3. Report exactly what happened with the person who helped you apply.
Keep any messages, receipts or transfer records showing what you paid her and what she told you. Ask NMFB to investigate whether she was authorised and whether the payment was an official charge. Do not assume that money paid to her reduced your loan balance.
Do not pay anyone else who promises to “clear your BVN” or make the debt disappear.
4. If the loan and balance are confirmed, request affordable repayment terms.
Explain your income and essential expenses honestly. Ask whether NMFB can restructure the debt, meaning change the repayment arrangement to something more manageable. Get any agreement in writing, including how automatic deductions will be handled. A request or complaint does not automatically stop recovery.
5. If the records are missing, the deductions are wrong, or your complaint remains unresolved, escalate.
Use the CBN’s official consumer complaints process, checking current submission requirements on cbn.gov.ng. Include your complaints to NMFB and the banks, their responses, statements and supporting evidence. If you suspect a forged acceptance or unauthorised application, seek legal help, including the Legal Aid Council if you cannot afford a lawyer.
Please also tell someone you trust how much this is affecting you. If the low mood persists or affects your sleep and daily life, speak with a health professional.
Your next move is not another payment to an intermediary. It is to establish what you agreed to, what you truly owe, what has already been collected, and what repayment you can realistically manage.
What should I do about NMFB COVID-19 loan deductions from my bank accounts when I thought the money was a grant?
My candid advice is to ask NMFB for your loan records, get both banks to explain the deductions, and request a repayment arrangement you can afford if the debt is confirmed. Do not assume the deductions are correct, but do not ignore the repayment notices either. I’m sorry this is weighing on you, eRead more
My candid advice is to ask NMFB for your loan records, get both banks to explain the deductions, and request a repayment arrangement you can afford if the debt is confirmed. Do not assume the deductions are correct, but do not ignore the repayment notices either.
I’m sorry this is weighing on you, especially when the money being deducted is what you need for daily living. Being told you owe money you thought was assistance can be very upsetting. Let us separate what you were told from what the records actually show.
The COVID-19 Targeted Credit Facility administered through NIRSAL Microfinance Bank, NMFB, was a loan programme, not a grant. However, your application and payment records must confirm whether that was the programme you received money under.
A grant is money you generally do not repay, provided you meet its conditions. A loan is money you must repay according to the agreement.
Imagine Mama Ngozi receives money to rebuild her tomato business. Someone helping her apply says, “It is government assistance.” But the offer she accepts says “loan” and includes repayment terms. The word “assistance” does not turn that loan into a gift. At the same time, if someone misled her or accepted terms without her permission, that deserves investigation.
Receiving money alone does not establish that every amount now being demanded or deducted is correct.
About the deductions from two banks: there is a mechanism called the Global Standing Instruction, or GSI. Under the applicable rules and an authorised mandate, it can allow recovery of overdue loans from eligible accounts linked to a borrower’s BVN, including accounts at other banks.
That could explain what you are seeing. It does not automatically mean someone is personally watching your accounts. But your banks must confirm the actual basis of these particular deductions. Your BVN alone is not blanket permission for anyone to take money.
Here is what I suggest you do.
1. Write to NMFB through contact details you independently confirm on its official website or at a branch.
Ask for your application, offer letter, evidence of your acceptance, repayment schedule, any GSI mandate, and a full loan statement. The statement should show the amount paid to you, interest and charges, every repayment or recovery, and the balance remaining.
You can write:
“I understood this payment to be a grant. I am now receiving repayment demands and deductions from my accounts. Please provide the documents establishing the loan and recovery authority, together with a full breakdown of the outstanding balance.”
2. Submit a written complaint to each bank making deductions.
Download your statements and identify the dates and amounts. Ask each bank to confirm who initiated the debits, whether they were GSI recoveries, the authority relied upon, and why you received no alerts. Keep complaint reference numbers and copies of every response.
Ask NMFB to match all deductions against your loan account so money already recovered is not demanded again.
3. Report exactly what happened with the person who helped you apply.
Keep any messages, receipts or transfer records showing what you paid her and what she told you. Ask NMFB to investigate whether she was authorised and whether the payment was an official charge. Do not assume that money paid to her reduced your loan balance.
Do not pay anyone else who promises to “clear your BVN” or make the debt disappear.
4. If the loan and balance are confirmed, request affordable repayment terms.
Explain your income and essential expenses honestly. Ask whether NMFB can restructure the debt, meaning change the repayment arrangement to something more manageable. Get any agreement in writing, including how automatic deductions will be handled. A request or complaint does not automatically stop recovery.
5. If the records are missing, the deductions are wrong, or your complaint remains unresolved, escalate.
Use the CBN’s official consumer complaints process, checking current submission requirements on cbn.gov.ng. Include your complaints to NMFB and the banks, their responses, statements and supporting evidence. If you suspect a forged acceptance or unauthorised application, seek legal help, including the Legal Aid Council if you cannot afford a lawyer.
Please also tell someone you trust how much this is affecting you. If the low mood persists or affects your sleep and daily life, speak with a health professional.
Your next move is not another payment to an intermediary. It is to establish what you agreed to, what you truly owe, what has already been collected, and what repayment you can realistically manage.
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