Remit N12bn loans deducted from workers’ salaries – Creditors to Nigerian govt

The Federal Government of Nigeria has been told to remit a total sum of N12 billion in loans deducted from workers’ salaries without delay.

A money lenders association operating under the aegis of ‘The Humanity Development and Empowerment Organisation (HDEO)’ said the remittance should be treated with the urgency it requires, given the economic hardship workers find themselves in.

The association said the loan was deducted from civil servants’ payslips and salaries but not credited to lenders.

Speaking during a leadership handover ceremony in Abuja, the outgoing National President, Osita Nebolisa, revealed that the loans, though deducted from workers’ payslips and salaries, remain unremitted.

He tasked the newly elected executives, led by National President Mr. Dele Apanisile, to prioritize resolving the matter with the Office of the Accountant General of the Federation and the Integrated Personnel and Payroll Information System (IPPIS).

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Nebolisa lamented the challenge of not recovering the N12 billion deducted loan before the end of his tenure and urged members of the association to support the new executive to ensure the recovery of the loan.

“The incoming leadership, consisting largely of experienced members from the current team, brings valuable continuity to this effort. To those few who may have reservations, I appeal for unified support of their strategies to retrieve these funds and prevent future losses through the IPPIS deduction system.”

During his tenure from November 2022 to November 2024, Osita Nebolisa, the founder of Visa Microfinance Bank Ltd, noted that over N6.2 billion in loans were provided to more than 2,400 federal civil servants.

He also highlighted the signing of a Service Level Agreement (SLA) with the Office of the Accountant-General of the Federation (OAGF) in 2023, which established a framework for equitable access to credit while protecting stakeholders’ interests.

The new executives pledged to build on the achievements of the past administration.

The association is a coalition of financial institutions, including commercial banks, microfinance banks, and finance companies, working collectively to promote equitable lending practices and financial inclusion for Nigeria’s workforce.