In what appears to be a deeply troubling systemic failure, hundreds of customers across Nigeria are crying out over the ongoing inefficiencies and insensitivity of NIRSAL Microfinance Bank. Despite fully repaying their loans, many of these individuals are still being illegally debited through the Global Standing Instruction (GSI) from their other bank accounts, a mechanism originally designed to enforce repayment from wilful defaulters, now turned into a punitive tool against innocent borrowers.
What was conceived as a safeguard against financial irresponsibility has mutated into an instrument of oppression. The GSI, activated by the Central Bank of Nigeria to enhance loan recovery, allows lenders to recover overdue loan obligations from defaulters by debiting their accounts in other banks. But in the hands of NIRSAL Microfinance Bank, it has reportedly become a blunt weapon, one that indiscriminately punishes the innocent along with the guilty.
For over four months and counting, affected customers, ranging from small business owners to low-income earners, traders, artisans, and even civil servants, have written repeatedly to the NIRSAL head office in Abuja and several state branches, requesting issuance of letters of non-indebtedness and a reversal of wrongly deducted funds. Most have received no meaningful response. The silence and lack of urgency from NIRSAL have left many stranded, angry, and financially incapacitated.
These are not just numbers on a spreadsheet—they are real people with real struggles. Many of them took the loans during the COVID-19 pandemic, as part of the federal government’s intervention programmes intended to cushion economic shocks and promote financial inclusion. To imagine that the same people who embraced government-backed loans in good faith are now being penalised for repaying them is as absurd as it is tragic.
Beyond the financial distress, there is the emotional trauma and humiliation of being wrongly listed as debtors. These unjust entries on their credit histories have limited their access to new funding opportunities, employment, and even housing. What was meant to empower them has, instead, become a source of continued impoverishment. This is not just inefficiency—it is a betrayal of trust.
Multiple customers have visited NIRSAL offices, only to meet nonchalant, dismissive officials who offer no solutions or empathy. Many are forced to return home with no clear timeline on when or if their credit records will be corrected or their funds refunded. This institutional inertia is rapidly turning into a scandal that questions not only the bank’s integrity but also the government’s sincerity in its poverty alleviation narrative.
One Lagos-based fashion entrepreneur who repaid her ₦500,000 loan in full in 2023 still finds her accounts being garnished monthly under GSI. “Every month, they take ₦5,000 or ₦10,000 from my other bank accounts. I’ve submitted all evidence of repayment, written letters, and visited their office four times. Nothing has changed. I feel helpless,” she said, visibly emotional.
At a time when Nigeria is battling economic hardship, unemployment, and insecurity, the incompetence and impunity at NIRSAL Microfinance Bank threaten to derail public confidence in government-led initiatives. How can Nigerians embrace entrepreneurship and economic empowerment when even after repaying their loans, they are still financially punished?
It is time for the Central Bank of Nigeria (CBN), the Nigerian Deposit Insurance Corporation (NDIC), and other regulatory bodies to step in. An immediate investigation and audit must be conducted into the GSI operations at NIRSAL. Those found culpable of negligence or wrongdoing must be held accountable, and urgent reforms introduced to restore public trust.
This is a test of institutional credibility. If this crisis is not swiftly addressed, it will not only further damage the already fragile image of government institutions like NIRSAL but also undermine future interventions designed to lift Nigerians out of poverty. What incentive remains for responsible borrowing when compliance is met with punishment?
Enough is enough: the people deserve justice, empathy, and accountability. Anything less is an endorsement of injustice wrapped in bureaucratic silence.
Dr. Laja Adesina is an agribusiness expert currently leading a team of professionals providing agricultural solutions across Nigeria. A former consultant to the Poultry Value Chain of the Federal Ministry of Agriculture, he has played a key role in developing national standards for poultry operations. He recently served as Principal Investigator for the GALVmed project on Newcastle Disease vaccination and deworming in Southwest Nigeria.
