Creditors Urge FG to Settle N12bn Loan Borrowed by Civil Servants

The Humanity Development and Empowerment Organisation (HDEO), also known as the Lenders Association, has called on the federal government to settle the N12 billion loan owed by civil servants.

At a handover ceremony in Abuja, Osita Nebolisa, the outgoing national president of HDEO and founder of Visa Microfinance Bank, explained that while the government had deducted the loan repayments from workers’ salaries, it had failed to remit the funds to the creditors.

Nebolisa urged the incoming president, Dele Apanisile, and the new leadership team to prioritize resolving the issue with the Office of the Accountant-General of the Federation (OAGF). He emphasized that the recovery of the over N12 billion remains a key challenge.

He also highlighted that under his leadership, the association, which includes commercial, microfinance banks, and finance companies, had provided over N6 billion in loans to more than 2,000 civil servants.

In 2023, the association signed a Service Level Agreement (SLA) with the OAGF to ensure fair access to credit and protect the interests of all stakeholders. Nebolisa appealed for unified support to address the issue and prevent future losses through the Integrated Payroll and Personnel Information System (IPPIS).