The Central Bank of Nigeria (CBN) says it has released ₦20.18 billion to NIRSAL Microfinance as credit facilities to small businesses to cushion the effect of COVID-19.
Responding to a part of the Freedom of Information (FOI) sent last year by Dataphyte in collaboration with the International Centre for Investigative Reporting (ICIR), the apex bank said the disbursement was dated July 23, 2020.
According to the letter signed by Mr C. T Okonta, the CBN’s Director of Secretariat, the fund catered for 12,238 small businesses across the country. In December, Dataphyte, in a special report, identified how inefficiency and inadequacies marred the distribution of the COVID-19 SME loan.
Findings by Dataphyte also showed that at least four beneficiaries registered their businesses with the Corporate Affairs Commission (CAC) after the application deadline. The results also revealed that about 107 small business owners have no record on the CAC portal, questioning the loan beneficiaries’ integrity.
Questionable MSME COVID-19 grantees
| No | COVID-19 SME Beneficiaries | Location | Date Of CAC Registration |
| 1 | Zee’S Planete Enterprise | Abuja | 2020-06-19 |
| 2 | Taimako Titus Farm Ltd | Bauchi | 2020-06-02 |
| 3 | Isah Idris Poultry and Eggs Production | Kaduna | 2020-12-03 |
| 4 | Olaitan Ultimate Ventures Intl | Kwara | 2020-07-03 |
(Sources: NIRSAL MfB/ CAC/ Dataphyte Research)
12, 238 beneficiaries benefited, CBN silent on actual beneficiaries
Despite returning the FOI request, the CBN failed to drop the list of the 12,238 beneficiaries that got the ₦20 billion-plus credit facilities. Efforts to get the data from CBN also proved abortive. The new CBN spokesperson also failed to attend to Dataphyte’s reporter’s enquiry on the COVID-19 SME loan.
COVID-19 disbursement as of July 23, 2020
| Intervention | No of Beneficiaries | Amount released to NIRSAL MfB (₦’bn) |
| COVID-19 loan to SME | 12,238 | 20.18 |
| COVID-19 to household | 86,900 | 36.36 |
| Total | 99,138 | 56.54 |
Source: CBN
Applicants expressed mixed feelings over the SME loan. While some complained over information deficiency from NIRSAL MfB, others are yet to know their fate on the repayment plans. Mr Kayode Adegbola, an advisor at Golborne Road Advisory, who received the facility, told Dataphyte last month that he was unable to get adequate information on repayments despite reaching out to NIRSAL MfB.
According to a FATE Foundation report, most of the small businesses surveyed said that COVID-19 negatively impacted their businesses, and may struggle to survive the pandemic.
Meanwhile, the nation is on the cusp of a second wave with COVID-19 confirmed cases showing no signs of slowing down. As of Monday, January 25, 2021, Nigeria recorded 1,430 new confirmed cases and three deaths. The African nation has had 122,996 documented instances; recoveries stand at 98,359 with 1507 deaths recorded in 36 states and the Federal Capital Territory.
The preceding goes to emphasise the importance of cushion funds for SMEs right now. This is because the Nigerian economy cannot afford another lockdown, per the President. After all, most business owners are still recovering from the contractionary effects of the first. To that end, a preemptive approach from the government is the way to go. COVID-19 loans to businesses being one of such. Nonetheless, opacity and bureaucracy must not hinder this process.
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