Creditors Urge FG to Remit N12bn in Loan Deductions from Workers’ Salaries

Creditors Urge FG to Remit N12bn in Loan Deductions from Workers’ Salaries

By Fly Cable News

The Nigerian government has been urged to immediately remit N12 billion in loan deductions that have been taken from workers’ salaries but not yet credited to lenders.

The call was made by the Humanity Development and Empowerment Organisation (HDEO), a group representing money lenders, which emphasized the urgent need for action given the economic challenges faced by workers.

According to the association, the loans were deducted from the salaries and payslips of civil servants, but the funds have not been remitted to the respective lenders.

Speaking at a leadership handover ceremony in Abuja, the outgoing National President of HDEO, Osita Nebolisa, revealed that despite the deductions, the loans remain unremitted. He urged the newly elected leadership, under National President Mr. Dele Apanisile, to prioritize addressing this issue with the Office of the Accountant-General of the Federation and the Integrated Personnel and Payroll Information System (IPPIS).

Nebolisa expressed regret that the N12 billion had not been recovered before the end of his tenure and called on association members to support the incoming leadership in ensuring the recovery of the funds.

“The new leadership, composed largely of experienced members, offers valuable continuity in this effort. I appeal for unified support in executing strategies to recover these funds and prevent further losses due to the IPPIS deduction system,” Nebolisa stated.

During his tenure from November 2022 to November 2024, Nebolisa, who is also the founder of Visa Microfinance Bank Ltd, noted that over N6.2 billion in loans were extended 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 in 2023, aimed at ensuring fair access to credit while safeguarding stakeholders’ interests.

The new leadership has pledged to build upon the progress made by the previous administration.

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