The Humanity Development and Empowerment Organisation, commonly referred to as the Lenders Association, has called on the Federal Government of Nigeria to take immediate action regarding the N12 billion in loans that have been deducted from the salaries of civil servants but remain unremitted to the concerned lenders. This demand was voiced during a recent leadership transition ceremony held in Abuja, where the outgoing National President, Dr. Osita Nebolisa, emphasized that despite these loans being deducted from workers’ payslips, they have not been credited to the lending institutions. The issue of unremitted funds has become a significant concern for the organization and its members, which necessitates prompt government intervention.
In his address, Dr. Nebolisa urged the newly elected executive committee, led by National President Mr. Dele Apanisile, to prioritize negotiations and solutions with the Office of the Accountant General of the Federation, as well as the Integrated Personnel and Payroll Information System (IPPIS). He stressed the urgency of addressing the matter, indicating that the recovery of the over N12 billion should be a central focus for the new leadership. Nebolisa also encouraged all association members to extend their support to the new executive in navigating this critical issue, which has persisted for an extended period.
During his tenure, which extended from November 2022 to November 2024, Dr. Nebolisa reported that his administration facilitated the disbursement of more than N6.2 billion in loans to over 2,400 federal civil servants. He noted that such financial assistance has been vital for many workers, further asserting that the Lenders Association has endeavored to improve financial access within the workforce. The former president acknowledged the establishment of a Service Level Agreement with the Office of the Accountant-General in 2023, which aimed to create a framework ensuring equitable access to credit while safeguarding the interests of all stakeholders involved.
The newly elected executive committee has vowed to continue the work begun by their predecessors and build upon previous successes. Their commitment to addressing the issue of unremitted loans reflects their understanding of its significance not just for the lending institutions but also for enhancing financial security and opportunity for civil servants. The new leadership intends to promote sustainable lending practices and ensure that the IPPIS deduction system operates effectively to prevent future occurrences of financial discrepancies.
The Lenders Association consists of a coalition of various financial institutions, including commercial banks, microfinance banks, and finance companies, all of which collaborate to promote equitable lending practices. By advocating for financial inclusion for Nigeria’s workforce, the organization serves as an essential stakeholder in the country’s efforts to bolster economic stability and empower civil servants. The challenges faced by the Association in recovering unremitted funds also reveal broader issues within the financial ecosystem that need addressing to ensure sustainable growth and investment in human development.
In conclusion, the Lenders Association’s plea for the remittance of N12 billion in loans highlights significant financial management issues affecting the civil service in Nigeria. The incoming executive committee faces the critical task of ensuring these deducted funds are recovered and utilized to improve the financial conditions of civil servants. The commitment of the new leadership to continue the trajectory established by the previous administration, along with the efforts to build stronger relations with key government bodies, is crucial in addressing these pressing challenges. The collective aim of the Lenders Association remains clear: to enhance financial inclusion, promote responsible lending practices, and ultimately empower Nigeria’s workforce.
